Two countries engaged in trade in products with no scale economies, produced under conditions of perfect competition, are likely to be engaged in E) oligopolistic competition B) monopolistic competition. A) inter-industry trade. D) Heckscher-Ohlin trade. C) intra-industry trade. 2 ** In the model of monopolistic competition, if firms have average cost curves, then opening trade will cause firms to the industry. D) symmetric; more efficient; enter B) different; more efficient; enter E) symmetric; less efficient; enter C) symmetric; less efficient; exit A) different; less efficient; exit 1 ** 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 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.