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External Economies Refer To

Question 6

Multiple Choice

External economies refer to:


A) cost advantages arising from locating a firm near important resources, such as skilled workers, capital resources, or required raw materials.
B) cost advantages arising from specializing in producing and trading items in which a nation has a comparative advantage.
C) cost advantages arising from specializing in producing and trading items in which a nation has an absolute advantage.
D) cost advantages arising from expanding production via trade to reach a firm-s minimum efficient scale.

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