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Eduncle posted an MCQ
October 20, 2019 • 19:28 pm 0 points
  • UGC NET
  • Economics

Assertion (A) : The existence of industries with increasing returns to scale create an additional opportunity to gain from trade.

Assertion (A): The existence of industries with increasing returns to scale create an additional opportunity to gain from trade. Reason (R) :By specializing in a smaller number of industries, countries can produce more in each industry and the costs of production will, therefore, fall.

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    Eduncle Best Answer

    Both (A) and (R) are true, but (R) is not the correct explanation of (A).

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