Linder's Hypothesis That Consumers Prefer to Choose from a Variety

Multiple Choice

Linder's hypothesis that consumers prefer to choose from a variety of goods with slightly different characteristics:

A) can explain intra-industry trade.
B) means that countries with different standards of living will tend to trade iron for pharmaceuticals.
C) is an explanation for factor-price equalization.
D) is an explanation for differences in the cost of production among countries.
E) has been empirically shown to be incorrect.