For each of the following examples, explain whether it is a case of external or internal economies
Question:
a. Most musical wind instruments in the United States are produced by more than a dozen factories in Elkhart, Indiana.
b. All Hondas sold in the United States are either imported or produced in Marysville, Ohio.
c. All airframes for Airbus, Europe’s only producer of large aircraft, are assembled in Toulouse, France.
d. Hartford Connecticut, is the insurance capital of the northeastern United States.
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Cases a and d reflect external economies of scale since concentration ...View the full answer
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Related Book For
International Economics Theory and Policy
ISBN: 978-0273754206
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
Question Posted:
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