Question: Question 2 Part (i): When a monopolistically competitive market opens up to international trade, each firm produces a greater quantity of output than it did

Question 2

Part (i): When a monopolistically competitive market opens up to international trade, each firm produces a greater quantity of output than it did before. Explain why this is.

Part (ii): When a monopolistically competitive market opens up to international trade, the total number of variants globally decreases, but each consumer has more variants to choose from. Explain how this is possible.

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