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Suppose the Market for Personal Computers in Country a Is

Question 34

Multiple Choice

Suppose the market for personal computers in country A is monopolistically competitive. Country A exports as well as imports personal computers from the rest of the world. After full adjustment to the opening of trade, a firm in this industry which enjoys scale economies will:


A) receive a higher price for its product.
B) receive a lower price for its product.
C) enjoy a greater market share.
D) ultimately go out of business.

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