Declining costs per unit of output results from international trade especially if ?
Correct answer: D. Economies of scale exist for producers
- A. International trade affords producers monopoly power
- B. National governments levy imports tariffs and quotas
- C. Producing goods entails increasing costs
- D. Economies of scale exist for producers
Explanation
Declining average cost per unit reflects economies of scale, where larger-scale production lowers unit costs. Monopoly power and trade barriers do not themselves guarantee lower production costs.
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