When Trade Occurs Among Nations with Similar Tastes

Multiple Choice

When trade occurs among nations with similar tastes,
Technology, products, and costs, monopolistically competitive
Firms will have an incentive:

A) to lower prices to get new customers and increase market share.
B) to raise prices to take advantage of a lucrative situation.
C) to cut corners in manufacturing to boost profits.
D) to raise quality, so they can charge a higher price than the competition.