Q.

Boeing aircraft company was able to cover its production costs of the first ―jumbo jetǁ in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates:

A. How economies of scale make possible a larger variety of products in international trade.
B. A transfer of wealth from domestic consumers to domestic producers as the result of trade
C. How a natural monopoly is forced to behave more competitively with international trade
D. How a natural monopoly is forced to behave less competitively with international trade
Answer» A. How economies of scale make possible a larger variety of products in international trade.
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