Question
Which of the following is not an implication of the monopolistic competition model of international trade that we discussed in class? Group of answer choices
Which of the following isnot an implication of the "monopolistic competition" model of international trade that we discussed in class?
Group of answer choices
When the size of markets is expanded through international trade customers benefit from lower prices and more variety.
When the size of markets is expanded through international trade fewer firms in total (that is, across the markets combined under trade) can make a profit.
When the size of markets is expanded through international trade the profits of the firms that produce for the combined market increase.
When the size of markets is expanded through international trade overall costs of production decline because not as many firms incur the fixed costs necessary to produce goods.
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