Product differentiation and internal economies of scale yield gains from trade in the form of

Question

Quizplus · Accepted Answer

Product differentiation and internal economies of scale allow for firms to produce goods at a lower cost, which can be passed on to consumers in the form of lower prices. Additionally, these factors allow firms to produce a greater variety of goods, which increases consumer choice and satisfaction, making trade more beneficial for both parties.

Product Differentiation and Internal Economies of Scale Yield Gains from Trade