In an industry where firms experience internal scale economies, ...

[leo leo]

In an industry where firms experience internal scale economies, the long-run cost of production will depend on
 
  A) the size of the market.
  B) the size of the labor force.
  C) whether the country engages in intra-industry trade.
  D) individual firms' fixed costs.
  E) whether the country engages in inter-industry trade.

Question 2

Which of the following has not been suggested as a reconciliation of Leontief's findings?
 
  A) international differences in tastes
  B) U.S. tariff structure
  C) failure to take into account natural resources
  D) temporary data problems immediately after World War II

[bhavsar]

Answer to Question 1

A

Answer to Question 2

D