What is the relationship between economies of scale and intra-industry trade?   Group of answer choices   Intra-industry trade brings competition and diverse products to markets where economies of scale would otherwise promote fewer firms and fewer product options   Intra-industry trade reduces competition and product variety in markets where economies of scale would otherwise promote competition and diverse products.

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Suppose a typical (representative) corn farm has a short run production technology which results in the outcome of U-shaped Average Variable Cost (AVC), Average Total Cost (ATC), and Marginal Cost (MC). Further, suppose this firm sells its product in a market where the price of the good is determined by the interaction of market Demand and Supply. Because an individual firm is very small compared to the rest of the market, we treat the market price as the price given to the firm, and the individual firm cannot impact that price.  assume we are in the Short Run for this firm. In graphing, put $ on the vertical axis and lower-case q (firm output) on the horizontal axis.    Start with the AFC0, AVC0, ATC0, and MC0 curves . show shifts in any of the cost curves, reflecting the higher cost of land (keeping in mind that this higher cost is independent of how much or how little corn is actually produced) and labeling the changed cost curves with a subscript 1. On the graph with $ on the…

Which of the following is true of vertical integration? O It occurs when a firm adds more layers of management to increase transparency in the accounting system. O It occurs when a firm buys another firm in a completely unrelated market. O It has no effect on the internal organization of a firm. O It occurs when firms internalize certain stages of production that were previously contracted to suppliers. O It occurs when firms try to buy up their competitors and corner the market.

This question deals with cost curves and isoprofit curves Keep in mind that the formula for a firm's cost function is: TC = FC + C(Q) TC → Total Costs: FC → Fixed Costs: C(Q) → Cost of production*Quantity produced → also known as Variable Costs Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q --- Equation (1) - Firm B: TC = 10 + 2Q --- Equation (2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. The cost per unit in each firm is $2. Firm B has a fixed cost of $10. (a) Make relevant plots of equations (1) and (2) (b) Use the plots in (a) and plots of isoprofit curves valuing $34,000 and $60,000 for the two firms to identify any differences in the shape of the two firms' isoprofit curves. Can you provide an explanation for any differences that may exist? (c) Use the information on both firms to assess…