Over the long run,the formation of a customs union may yield welfare gains due to economies of scale,greater competition,and stimulus to investment.

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The formation of a customs union can lead to greater efficiency through economies of scale, more competition, and investment. All of these factors can contribute to economic growth and overall welfare gains in the long run. However, it is important to note that the success of a customs union depends on a variety of factors, including the specific policies and regulations put in place, the level of integration among member countries, and external factors such as global economic conditions.

Over the Long Run,the Formation of a Customs Union May