In long-run equilibrium with trade, losses from import competition will force some firms to ______________, increasing demand for the remaining firms' output, which will then cause their demand curves to become ______________, due to the increased variety of products from _______________.
a. raise prices; steeper; new firms entering the industry
b. leave the industry; flatter; foreign firms
c. lower prices; more inelastic; new firms entering the industry
d. lay off workers; more elastic; the research and development departments in firms
Ans: b. leave the industry; flatter; foreign firms
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