Question: Hello, please answer question 1 ,thanks Question 1 (1 point) What would be one implication of adding trade costs t to the internal economies model
Hello, please answer question 1 ,thanks

Question 1 (1 point) What would be one implication of adding trade costs t to the internal economies model with firms of different marginal costs? Only the lowest cost firms will be able to export O export market prices will be lower than domestic prices charged by the same firms O firms that export will not be able to operate on the domestic (home) market trade costs add to the fixed cost per firm, which further strengthen internal economies of scale forces
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