Which of the Following Results in International Specialization

question 129

Multiple Choice

Which of the following results in international specialization?

• A)Differing consumer tastes
• B)Diseconomies of scale in production
• C)A high world price for a good
• D)Diminishing returns to a variable factor of production
• E)Differences in benefits that consumers and producers get from domestic market exchange

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Definitions:

Bilateral Monopolist

This term describes a market with only one supplier (monopolist) and one buyer (monopsonist), leading to Unique negotiation dynamics over price and quantity.

Monopolist

An entity that is the sole provider of a particular product or service in the market, gaining the ability to influence or set prices to its advantage.

Losses

Financial outcomes where expenses exceed revenues, resulting in negative profit for a business or individual.

Gains

The increase in wealth or resources, often measured as the difference between the sale price and the purchase price of an asset.