What Is the Expected Outcome When Trade Occurs in a

question 24

Multiple Choice

What is the expected outcome when trade occurs in a
Monopolistically competitive industry if the nations have similar
Tastes, technology, products, and costs?

• A)No trade is possible.
• B)Consumers are left with no choices.
• C)Each firm has a larger market in which to sell, and consumers have more choices of sellers and products.
• D)Transportation costs become the driving factor.