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Chako Chako
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8 years ago
In the model of monopolistic competition, trade costs between countries cause
A) marginal costs of goods sold domestically to exceed the marginal costs of exported goods.
B) prices of goods sold domestically to exceed the prices of exported goods.
C) all firms that can earn a profit on domestic sales to export their goods at higher prices.
D) some firms that can earn a profit on domestic sales to refrain from exporting their goods.
E) countries to negotiate the elimination of trade costs by mutual subsidization of trade.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
7 years ago
Happy to help you!
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