If some industries exhibit increasing returns to scale in each country,we should not expect to see
A)intraindustry trade between countries.
B)perfect competition in these industries.
C)interindustry trade between countries.
D)Either B or C.

Question

Quizplus · Accepted Answer

Industries with increasing returns to scale often lead to imperfect competition due to the advantages of large-scale production, making perfect competition unlikely.

If Some Industries Exhibit Increasing Returns to Scale in Each