According to New Trade Theory,which of the Following Could Be

question 141

Multiple Choice

According to new trade theory,which of the following could be a result of the economies of scale that may be achieved by individual firms as the size of the market expands due to trade?

• A)Each nation can produce a wider variety of goods,minimizing its imports.
• B)Each nation can simultaneously decrease the variety of goods available to its consumers and raise the costs of those goods.
• C)Each nation may specialize in producing a narrower range of products,importing goods that it does not make.
• D)Each nation can attain self-sufficiency in most products and eliminate exports.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Cash Payments

Transactions where cash is exchanged for goods, services, or to settle an obligation.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Dividends Payable

This refers to the amount of declared dividends owed by a company to its shareholders but has not yet been paid out.