Multiple Choice
Which of the following is FALSE?
A) Economies of scale may be internal, external, or both.
B) With internal economies of scale, the gains from trade include a wider selection of consumer choices and lower prices.
C) With external economies of scale, the gains from trade are less certain since, in theory, they can lock in production in a less efficient country and prevent the development of production in a more efficient country.
D) Internal economies of scale lead firms to regionally concentrate their industry.
Correct Answer:

Verified
Correct Answer:
Verified
Q34: Benefits of R&D spending to foreigners may
Q35: If the United States and Mexico trade
Q36: When there are external economies of scale
Q37: Sound macroeconomic policies are less important than
Q38: Economies of scale are an important determinant
Q40: A substantial amount of trade between industrialized
Q41: If the United States and Canada trade
Q42: Describe how Mexico's manufacturing has changed location
Q43: Which industry was first covered by a
Q44: An internal economies of scale is defined