Linder's hypothesis provides an explanation for
A)increasing returns to scale.
B)imperfect competition.
C)intraindustry trade.
D)All of the above.

Question

Quizplus · Accepted Answer

Linder's hypothesis proposes that countries with similar levels of per capita income are more likely to engage in intraindustry trade, meaning they trade similar products within the same industry. This trade occurs because countries with similar income levels have similar consumer preferences and demand for these products.

Linder's Hypothesis Provides an Explanation for