Because the size of the market increases when trade barriers fall, companies can increase their production, which will result in lower costs per unit. This phenomenon is known as ________.

Because the size of the market increases when trade barriers fall, companies can increase their production, which will result in lower costs per unit. This phenomenon is known as ________.




A) trade creation
B) economies of scale
C) diseconomies of scale
D) increased competition


Answer: B) economies of scale


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