When Countries Create a Free Trade Area and Increase Market

question 39

Multiple Choice

When countries create a free trade area and increase market size, the schedule relating

• A)price to the number of firms in the market shifts to the left.
• B)average total cost to the number of firms in the market shifts to the left.
• C)average total cost to the number of firms in the market shifts to the right.
• D)price to the number of firms in the market shifts to the right.
• E)average total cost to the number of firms in the market remains constant.

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