Question: Question 2 When a monopolistically competitive market opens up to international trade, the individual firm-level demand curves faced by each firm are affected. Even before

Question 2 When a monopolistically competitive market opens up to international trade, the individual firm-level demand curves faced by each firm are affected. Even before this prompts market entry or exit {which would further affect these individual firm-level demand curves), they shift cutward (i.e., demand increases) and become flatter. Part (i): Explain why opening up to trade leads the individual firm-level demand curves to shift outward. Part (ii): Explain why opening up to trade leads the individual firm-level demand curves to become flatter

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