Which of the Following Is a Result of Certain Products

question 106

Multiple Choice

Which of the following is a result of certain products having small national markets,in the absence of trade?

• A)The variety of products available to consumers increases.
• B)Limited demand for such products leads to non-realization of economies of scale.
• C)Each nation will specialize in producing a narrower range of products than it would in the presence of trade.
• D)At low volumes of production,unit costs and prices would be lowered.
• E)The first movers in an industry may get a lock on the world market that discourages subsequent entry.

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Definitions:

Average Inventory

An accounting measure used to estimate the value or quantity of inventory over a period, typically calculated as the sum of the starting and ending inventory divided by two.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.

Cost of Goods Sold

The expenditure directly associated with producing a company's sold goods, covering materials and labor involved.