Related to the Economics in Practice on Page 197

Multiple Choice

Related to the Economics in Practice on page 197. In a world economy in which trade occurs across geographical boundaries, if economies of scale exist,

A) they actually result in lower output due to exchange rate variations.
B) it is possible to exploit them across a very large output base.
C) trade barriers prevent them from being beneficial.
D) they promote production of products in which a country does not have a comparative advantage.