When Economies of Scale Exist Over Wide Production Ranges for Two

question 51

Multiple Choice

When economies of scale exist over wide production ranges for two products,

• A)no specialization in production will occur but cost per unit will fall.
• B)the gain from trade is the reduction in cost per unit.
• C)specialization in production will occur but cost per unit will not fall.
• D)the gain from trade is the increase in cost per unit.
• E)the gain from trade is the increase in labor productivity.

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Definitions:

Distributive Justice

The ethical principle concerned with the fair and equitable allocation of goods, resources, and rights among members of a society.

Scarce Supply

A situation where the availability of a particular resource or commodity is limited or not sufficient to meet demand.

Allocate Resources

The process of assigning available resources, typically in an organization, to specific tasks or projects to achieve efficiency and goals.

Abortion

The medical procedure of ending a pregnancy so it does not result in the birth of a baby.