Question: Explain (utilizing consumer surplus and producer surplus) and show graphically that in the absence of market failures, international trade is preferable to restricted international trade

Explain (utilizing consumer surplus and producer surplus) and show graphically that in the absence of market failures, international trade is preferable to restricted international trade and restricted international trade is preferable to no international trade; and List prevailing outcomes (conditions) for respective parties (consumers and producers) when allocative efficiency (efficiency in consumption and efficiency in production) prevails.

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