Question

The fictional global firm of Knickerbockers Socks established itself in the international trade industry ten years ago and has been an active participant with intra-industry trade in developed countries. Because of the way Knickerbockers operates, it can take advantage of economies of scale. What do economies of scale make possible for its sock customers

Answer 1

Answer: c. A large variety of sock styles and sizes at competitive prices.

Step-by-step explanation:

Economies of scale refers to a scenario that arises with companies that operate on a certain scale that makes their cost per unit decrease as they produce more units of a good.

When this happens, such companies can offer more goods at cheaper prices because they have less costs to cover. Knickerboxers Socks has a economies of scale which allows it to produce a large variety of sock styles that it can sell at cheaper competitive prices.