"In the shift from no trade to free trade, the monopolistic-competition model can predict which specific varieties of products will be produced by which countries, and the models based on substantial scale economies can predict which countries will be the major production locations for a product." Are these claims correct? Explain briefly.

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The Answer of "In the shift from no trade to free trade, the monopolistic-competition model can predict which specific varieties of products will be produced by which countries, and the models based on substantial scale economies can predict which countries will be the major production locations for a product." Are these claims correct? Explain briefly.

"In the Shift from No Trade to Free Trade, the Monopolistic-Competition