If a country closes off to trade and prices remain unchanged, what does that mean?

A. Autarky prices and free trade prices are the same.

B. Autarky prices are larger than free trade prices.

C. Autarky prices are smaller than free trade prices.

D. The absolute value of autarky prices are negatively correlated with free trade prices.

QUESTION A.2

If a country closes off to trade and notices that the number of firms in an industry doubles in size, what economic theory would help us explain this phenomenon?

A. Stolper-Samuelson.

B. Melitz.

C. Ricardian.

D. Cournot.