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When Trade Occurs Among Nations with Similar Tastes

Question 58

Multiple Choice

When trade occurs among nations with similar tastes,
Technology, products, and costs, monopolistically competitive
Firms will have an incentive:


A) to lower prices to get new customers and increase market share.
B) to raise prices to take advantage of a lucrative situation.
C) to cut corners in manufacturing to boost profits.
D) to raise quality, so they can charge a higher price than the competition.

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