"Lower costs through economies of scale" refers to:
A)one of the reasons for restricting international trade
B)the advantage that can sometimes arise when companies can sell to international markets
C)the way in which big companies can dominate domestic markets when there is no trade
D)the increased variety of goods that can be accessed in a free-trade economy

Question

Quizplus · Accepted Answer

Lower costs through economies of scale refers to the advantage that can sometimes arise when companies can sell to international markets. This happens when a company can take advantage of a larger market to spread its fixed costs over a larger number of units, resulting in a lower cost per unit. As a result, the company can offer a lower price to consumers, which can make it more competitive in both domestic and international markets.

"Lower Costs Through Economies of Scale" Refers To