An industry is characterized by scale economies, and exists in two countries. Should these two countries...

 

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An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country's industry, then 请选择你的答案 B) consumers in both countries would have higher prices and fewer varieties. A) consumers in both countries would have more varieties and lower prices. D) consumers in the exporting country only would have higher prices and fewer varieties. E) consumers in both countries would have fewer varieties at lower prices. C) consumers in the importing country only would have higher prices and fewer varieties. An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country's industry, then 请选择你的答案 B) consumers in both countries would have higher prices and fewer varieties. A) consumers in both countries would have more varieties and lower prices. D) consumers in the exporting country only would have higher prices and fewer varieties. E) consumers in both countries would have fewer varieties at lower prices. C) consumers in the importing country only would have higher prices and fewer varieties.

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Option E is correct that is Consumer in both countries wou... View the full answer