2. What is meant by economies of scale? How can economies of scale be the basis...

 

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2. What is meant by economies of scale? How can economies of scale be the basis for international trade? 3. In what way was Ricardo's law of comparative advantage superior to Smith's theory of absolute advantage? How do gains from trade arise with comparative advantage? How can a nation that is less efficient than another nation in the production of all commodities export anything to the second nation? 2. What is meant by economies of scale? How can economies of scale be the basis for international trade? 3. In what way was Ricardo's law of comparative advantage superior to Smith's theory of absolute advantage? How do gains from trade arise with comparative advantage? How can a nation that is less efficient than another nation in the production of all commodities export anything to the second nation?

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2ECONOMIES OF SCALES are cost advantages reaped by companies when production becomes efficientCompan... View the full answer