The Theory of Oligopoly Provides Another Reason That Free Trade

Multiple Choice

The theory of oligopoly provides another reason that free trade can benefit all countries because

A) increased competition leads to larger deadweight losses.
B) as the number of firms within a given market increases, the price of the good decreases.
C) as the number of firms within a given market increases, the profit of each firm increases.
D) All of the above are correct.