Imagine the U$.$S$.$ were to move to eliminate most import tariffs for manufactured goods from all its major trading partners. In return, those trading partners eliminate most import tariffs for manufactured goods made in the USA. How would this likely affect the probability distribution of plant$-$level productivity of new entrant manufacturing plants that start operations after this policy change relative to before this policy change?

Question $14$ options:

a$)$

The probability distribution of new entrant plant productivity for the cohort of plants created after trade is liberalized would have more observations $($i$.$e$.,$ more weight$)$ in the left tail $($i$.$e$.,$ low productivity$)$ and a lower average productivity than the cohort of new entrant plants created before trade is liberalized.

b$)$

The probability distribution of new entrant plant productivity for the cohort of plants created after trade is liberalized would not differ from the probability distribution of new entrant plant productivity for the cohort of new entrant plants created before trade is liberalized.

c$)$

The probability distribution of new entrant plant productivity for the cohort of plants created after trade is liberalized would have fewer observations $($i$.$e$.,$ less weight$)$ in the left tail $($i$.$e$.,$ low productivity$)$ and a higher average productivity than the cohort of new entrant plants created before trade is liberalized.