When a firm operates at an output level of 9,000 units, the…

When a firm operates at an output level of 9,000 units, the per-unit cost is $5. When the production is between 10,000–12,000 units, the per-unit cost is $4. At a production level of 13,000 units, the production cost is again $5 per unit. At 14,000 units and above, the production cost increases further. At what output level does the firm experience economies of scale?

Maddox Bauxite Extraction Inc. has decided to enter into a f…

Maddox Bauxite Extraction Inc. has decided to enter into a foreign market by setting up its own production facilities and distribution channels from scratch. This will give it strong control over all its business activities. Which of these foreign entry modes will Maddox most likely choose?