When Economies of Scale Exist Over Wide Production Ranges for Two

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.