A/An ________ Would Be an Example of an Internalization Advantage

question 30

Multiple Choice

A/An ________ would be an example of an internalization advantage for an MNE.

• A) patent
• B) economy of scale
• C) unique source of raw materials
• D) possession of proprietary information

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Definitions:

Variable Costs

Expenses that change in proportion to the production output or sales volume of a company.

AVC

Average Variable Cost, calculated by dividing the total variable costs by the quantity of output produced.

AFC

Average Fixed Costs, which represent the fixed costs per unit of output, calculated by dividing total fixed costs by the number of units produced.

AVC

Average Variable Cost (AVC) is the total variable costs of production divided by the quantity of output produced, reflecting the cost per unit of varying the level of output.