IE Chapter 7

If a firm's output more than doubles when all the inputs are doubled, production is said to occur under conditions of

One advantage of the specialization that results from international trade is that countries can take advantage of

If a firm's output doubles when all inputs are doubled, production is said to occur under conditions of

If a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of

The existence of external economies of scale

The existence of internal economies of scale

When there are external economies of scale, an increase in the size of the market will

If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

External economies of scale arise when the cost per unit

Internal economies of scale arise when the cost per unit

Where there are internal economies of scale, the scale of production possible in a country is constrained by

Internal economies of scale will ______________________ average cost when output is __________ by ________________.

External economies of scale will ___________ average cost when output is _______________ by __________________.

External economies of scale often arise because similar firms

The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in

The long-run market supply curve in the presence of internal economies of scale is ________, and in the presence of external economies of scale, it is ________.

If output is increased in the long-run, average production costs in the presence of internal economies of scale will ________, and in the presence of external economies of scale, will ________.

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be ________ and the long-run market supply curve will be ________.

If output is increased in the long-run, then in the presence of internal economies of scale the number of firms will ________, and in the presence of constant external returns to scale the number of firms will ________.

If output is increased in the long-run, average production costs in the presence of internal diseconomies of scale will ________, and in the presence of external diseconomies of scale, will ________.

If two countries begin trade and both produce a product subject to external economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market

In the presence of external economies of scale, trade

A learning curve relates ________ to ________ and is a case of ________ returns.

The learning curve describes the ________ relationship between ________ and ________.

If two countries begin trade and both produce a product subject to internal economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market.

Restaurant meals are an example of a ________ good and clothing is an example of a ________ good. The pattern of interregional trade is determined primarily by ________.

The share of ________ goods in employment is ________ across the country. The share of ________ goods in employment is ________ across the country.

Patterns of interregional trade are primarily determined by ________ rather than ________ because factors of production are generally ________.

The primary determinant of patterns of interregional trade is

The study of factors that influence both international and interregional trade is referred to as