According to New Trade Theory,which of the Following Is Most

question 9

Multiple Choice

According to new trade theory,which of the following is most likely to be a result of market expansion due to trade?

• A)A wide variety of products is produced at greater unit costs than in the absence of trade.
• B)As the variety of products increases,demand for individual products decreases,leading to non-realization of economies of scale.
• C)Each nation may specialize in producing a narrower range of products,importing goods that it does not make.
• D)The ability to capture first-mover advantages is restricted in a world that allows trade.
• E)When countries do not differ in their resource endowments or technology,trade does not offer mutual benefits.

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Definitions:

Health Care Suppliers

Entities that provide medical goods and services including hospitals, clinics, pharmacies, and manufacturers of medical equipment.

Demand

The willingness and capacity of customers to buy products and services at specific prices.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price level.

Insurance Copayments

The fixed out-of-pocket amount paid by an insured for covered services, in addition to any insurance-covered portion.