Question

SCI. DJ CLICS. Janvuls. D) peuoleum Jelena LILI 31 . When compared with China, the growth of clothing exports originating in Bangladesh is the result of: A) the comparative advantage that Bangladesh has in the production of clothing for export. B) the absolute advantage that China has in the production of clothing for export. C) the absolute advantage that Bangladesh has in the production of clothing for export. D) the comparative and absolute advantage that China has in the production of clothing for export. E) the comparative and absolute advantage that Bangladesh has in the production of clothing for export 24 . The existence of external economies of scale A) tends to result in large profits for each firm. B) may be associated with a perfectly competitive industry. C) cannot be associated with a perfectly competitive industry. D) tends to result in one huge monopoly. E) focuses more on individual firms than the industry as a whole. 25. The existence of internal economies of scale A) may be associated with a perfectly competitive industry. B) is associated only with sophisticated products such as aircraft. C) cannot be associated with a perfectly competitive industry. D) cannot form the basis for international trade. E) focuses more on the industry than individual firms.

Answer 1

a) "A"

it is a result of comparative advantage that Bangladesh has for the production of clothing as compared to China.

b) "A"

An external economies of scale will benefit all the firms working in the market for example better infrastructure and cheaper electricity.

c) "C"

Cannot be associated with perfectly competitive industry because here, all the firm are same structure and internal economie sof scale will make the market a monopoly.