Two countries engaged in trade in products with scale economies,produced under conditions of monopolistic competition,are likely to be engaged in

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When two countries engage in trade in products with scale economies, produced under conditions of monopolistic competition, they are likely to engage in intra-industry trade. Intra-industry trade occurs when countries trade goods of the same industry or products that are similar in nature. This type of trade is mainly driven by differences in product quality, design, and marketing. It allows countries to specialize in the production of particular goods and benefit from scale economies, leading to increased efficiency and productivity.

Two Countries Engaged in Trade in Products with Scale Economies,produced