When economies of scale exist over wide production ranges, countries that specialize in one product and trade excess units to other countries can

Question

Quizplus · Accepted Answer

When economies of scale exist, producing more leads to lower average total costs of production. By specializing in one product and trading excess units to other countries, a country can increase their production and benefit from the lower costs associated with economies of scale, ultimately leading to lower average total costs of production.

When Economies of Scale Exist Over Wide Production Ranges, Countries