Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies 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 consumer to domestic producer 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

Correct Answer: How economies of scale make possible a larger variety of products in international trade ✔

Last Updated: June 18, 2019