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If the Cost of Producing a Product Declines Dramatically with Increases

Question 105

Multiple Choice

If the cost of producing a product declines dramatically with increases in the level of output then:


A) economies of scale (EOS) may be a source of comparative advantage.
B) countries with a large internal market may be more likely to have a comparative advantage in the production of this product.
C) the level of output and comparative advantage are unrelated.
D) both a and b
E) both b and c

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