Advanced Placement (AP), 04.05.2021 14:00 micahwilkerson9495
"Trade needs not be the result of comparative advantage. Instead, it can result from increasing
returns or economies of scale, that is, from a tendency of unit costs to be lower with larger output".
(i)
Briefly discuss two ways in which economies of scale causes international trade.
(15 marks)
Answers: 1
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