Canadian politicians who promoted the NAFTA in the early 1990s claimed that Canadian producers would have access to a larger market and thus costs would decline.Which of the following sources of the gains from trade are implied by this statement?

Question

Quizplus · Accepted Answer

The statement implies economies of scale, as access to a larger market allows producers to increase production and spread costs over more units of output, reducing the cost per unit.

Canadian Politicians Who Promoted the NAFTA in the Early 1990s