Which of the following is NOT an effect of intra-industry trade, if the concerned industry is monopolistically competitive?
A) There are considerable national gains that arise from trade because there is an increase in the number of varieties of products available in the country.
B) Domestic consumers gain because such trade results in lower prices of domestic varieties of the good.
C) Total output of the domestic firms in the industry increases as a result of such trade.
D) There are few shifts in production between industries that put pressures on factor prices.
Correct Answer:
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