What Is the Expected Outcome When Trade Occurs in a Monopolistically

Multiple Choice

What is the expected outcome when trade occurs in a monopolistically competitive industry if the nations have similar tastes, technology, products, and costs?

A) No trade is possible.
B) Consumers are left with no choices.
C) Each firm has a larger market in which to sell, and consumers have more choices of sellers and products.
D) Transportation costs become the driving factor.