When economies of scale exist over wide production ranges for two products,

Question

Quizplus · Accepted Answer

When economies of scale exist over wide production ranges for two products, the gain from trade is the reduction in cost per unit. This allows for more efficient use of resources and can lead to increased production and lower prices for consumers. Therefore, specialization in production will occur and cost per unit will fall, resulting in the gain from trade being the reduction in cost per unit.

When Economies of Scale Exist Over Wide Production Ranges for Two