Question

There are two economies a and b and the labor cost of producing unit output of two commodities 1 & 2 is

Answer 1

Explanation:

The American statesman Benjamin Franklin (1706–1790) once wrote: “No nation was ever ruined by trade.” Many economists would express their attitudes toward international trade in an even more positive manner. The evidence that international trade confers overall benefits on economies is pretty strong. Trade has accompanied economic growth in the United States and around the world. Many of the national economies that have shown the most rapid growth in the last few decades—for example, Japan, South Korea, China, and India—have done so by dramatically orienting their economies toward international trade. There is no modern example of a country that has shut itself off from world trade and yet prospered. To understand the benefits of trade, or why we trade in the first place, we need to understand the concepts of comparative and absolute advantage.

Answer 2

Answer -

____________________________________

• In microeconomics, economies of scale are the cost advantages that enterprises ... There is a distinction between two types of economies of scale: internal and external. An industry.

____________________________________

→ Hope it will help you ❣️❣️