题目内容
The factor-price-equalization theory is a short-run version of the specific-factors theory.
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With economies of scale, specialization in a few products allows a manufacturer to benefit from longer production runs which lead to decreasing average cost.
With decreasing costs, a country has an incentive to partially specialize in the product of its comparative advantage.
By widening the size of the domestic market, international trade permits companies to take advantage of longer production runs and increasing efficiencies such as mass production.
The theory of overlapping demands applies best to trade in manufactured goods.
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