Exam 7: External Economies of Scale and the International Location of Production

The share of _ _ goods in employment is _ across the country.The share of _ goods in employment is across the country.

The primary determinant of patterns of interregional trade is

The Internet has made transactions between businesses (B2B trading)fast and easy.Any business in any location can access specialized knowledge,labor,and materials.It is likely that these virtual economic communities will result in

If a firm's output more than doubles when all inputs are doubled,production is said to occur under conditions of

If output is increased in the long run,average production costs in the presence of internal diseconomies of scale will ,and in the presence of external diseconomies of scale,will .

If two countries begin trade and both produce a product subject to external economies of scale,then the country with the rate of production will production until it controls of the market.

The existence of external economies of scale

External economies of scale often arise because similar firms

Patterns of interregional trade are primarily determined by _ rather than because factors of production are generally .

If output is increased in the long run,average production costs in the presence of internal economies of scale will _ ,and in the presence of external economies of scale,will .

The study of factors that influence both international and interregional trade is referred to as

The learning curve describes the relationship between and .

The existence of internal economies of scale

Where there are internal economies of scale,the scale of production possible in a country is constrained by

If a firm's output less than doubles when all inputs are doubled,production is said to occur under conditions of

If output is increased in the long run,then in the presence of internal economies of scale the number of firms will ,and in the presence of constant external returns to scale the number of firms will .

One advantage of the specialization that results from international trade is that countries can take advantage of

Internal economies of scale arise when the cost per unit

A learning curve relates to and is a case of returns.

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry,a firm's long- run supply curve will be _ and the long- run market supply curve will be .