What Is the Expected Outcome When Trade Occurs in a Monopolistically

question 57

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.

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