which of the following is a type of trade restriction? group of answer choices diseconomies of scale. autarky. diminishing marginal returns. low-interest loans to foreign buyers. increasing the opportunity cost of production.

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06-12-2022
Business

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which of the following is a type of trade restriction? group of answer choices diseconomies of scale. autarky. diminishing marginal returns. low-interest loans to foreign buyers. increasing the opportunity cost of production.

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bhawsarsakshi4 bhawsarsakshi4 · Answer 1 · 2022-12-10T04:43:28-05:00

Diseconomies of scale is a type of trade restriction. Thus, option A is correct.

What is trade restriction?

Trade limitations are imposed by the government on global trade. The idea of competitive advantages claims that trade restrictions harm the global economy and reduce overall economic productivity.

The antithesis of scale-based economies of scale is how diseconomies from scale work. This happens when a company becomes so big that the cost of each product goes up. Given that there are reduced entrance obstacles when trade restrictions are reduced, competition is also reduced.

Therefore, option A is the correct option.

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What is trade restriction?

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