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If Two Countries Begin Trade and Both Produce a Product

Question 27

Multiple Choice

If two countries begin trade and both produce a product subject to internal economies of scale,then the country with the rate of production will production until it controls of the market.


A) higher; decrease; 0%
B) lower; increase; 100%
C) lower; increase; 50%
D) higher; increase; 50%
E) higher; increase; 100%

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