Which of the following is NOT an effect of intra-industry trade if the concerned industry is monopolistically competitive?
A. Total output of the domestic industry increases as a result of such trade.
B. There are few shifts in production among industries that put pressures on factor prices.
C. There are considerable national gains that arise from trade because there is an increase in the number of varieties of products available in the country.
D. Domestic consumers gain because such trade results in lower prices of domestic varieties of the good.
Answer: A
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Exhibit 30-2
?
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a. True b. False Indicate whether the statement is true or false