Because of substantial economies of scale,the ______rgues that in many industries there are increasing returns to specialisation.

Question

Quizplus · Accepted Answer

The New Trade Theory argues that due to economies of scale, specialization and production of a narrow range of goods in certain industries can lead to increasing returns. This means that as production increases, the cost per unit decreases, leading to increased profits for firms. Therefore, the correct answer is C.

Because of Substantial Economies of Scale,the ______Rgues That in Many