Boeing aircraft company was able to cover its production costs of the first "jumbo jet" in the 1970s because Boeing could market it to several foreign airlines in addition to domestic airlines.This illustrates:
A) How economies of scale make possible a larger variety of products in international trade
B) A transfer of wealth from domestic consumers to domestic producers as the result of trade
C) How a natural monopoly is forced to behave more competitively with international trade
D) How a natural monopoly is forced to behave less competitively with international trade

Question

Quizplus · Accepted Answer

The fact that Boeing was able to market its product to multiple foreign airlines in addition to domestic airlines suggests that they were taking advantage of economies of scale in international trade. This allows for a larger variety of products to be produced and sold globally, increasing efficiency and lowering costs.

Boeing Aircraft Company Was Able to Cover Its Production Costs