Product Differentiation and Internal Economies of Scale Yield Gains from Trade

question 44

Multiple Choice

Product differentiation and internal economies of scale yield gains from trade in the form of

• A) higher profits and lower trade costs.
• B) lower production costs and a greater variety of goods.
• C) the proximity-concentration effect.
• D) the substitution of immigration for foreign direct investment.
• E) a proliferation of competitive firms.

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