Internal economies of scale provide the incentive for countries to
A) specialize in a few products.
B) manufacture a wider range of products.
C) specialize in products that are in demand abroad.
D) manufacture only a few units of products that are in demand.

Question

Quizplus · Accepted Answer

Internal economies of scale mean that as a company produces more of a good, the average cost of production decreases. This creates an incentive for countries to specialize in a few products, as they can then produce those products more efficiently and at a lower cost. This can lead to increased exports and economic growth.

Internal Economies of Scale Provide the Incentive for Countries to