If production is characterized by __________,then expansion of trade that allows individual producers to serve consumers spread out over larger areas may also increase productivity.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. Expansion of trade allows producers to serve a larger market, which can lead to increased production and thus greater economies of scale, enhancing productivity.

If Production Is Characterized by __________,Then Expansion of Trade That