A larger variety of products results from international trade especially if:
A) International trade affords producers monopoly power
B) National governments levy import tariffs and quotas
C) Producing goods entails increasing costs
D) Economies of scale exist for producers

Question

Quizplus · Accepted Answer

Economies of scale are achieved by producers when they are able to produce large quantities of goods at a lower unit cost. International trade allows producers to access larger markets and therefore enjoy economies of scale, resulting in a greater variety of products being available to consumers.

A Larger Variety of Products Results from International Trade Especially