If Billington Company Could Increase Production, Its Average Cost of Production

If Billington Company could increase production, its average cost of production would fall. Because domestic demand is so small, Billington is unable to take advantage of this opportunity. In this instance, free trade could:

A) allow Billington to increase its production and sell the additional output abroad; however, its profits will fall as a result of this action because this output will have to be sold at a lower price.
B) allow Billington to increase its production because it could sell the additional output abroad. This increased production should increase Billington's profits.
C) help the consumer because output will be sold at a lower price, but harm the producer because profits will fall.
D) harm the consumer because as output increases, Billington will charge a higher price.