When Trade Occurs Among Nations with Similar Tastes, Technology, Products

Multiple Choice

When trade occurs among nations with similar tastes, technology, products, and costs, monopolistically competitive firms will have an incentive to:

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