Question

n principle, a tendency for firms to congregate in a single nation to reap trade-cost advantages related to key inputs located within that nation, thereby yielding a trade advantage for that nation, could result from: Select one: a. internal economies and attainment of minimum efficient scale. b. external economies and agglomeration. c. economies of scale and government-erected entry barriers. d. diseconomies of scale and a first-mover advantage.

Answer 1

Answer:

b. external economies and agglomeration.

Explanation:

Base on the scenario been described in the question, the correct option in the question should be option B. external economics and agglomeration this so because external economies and agglomeration can yield trade benefits for the nation and the firms.