If nations such as Germany,Japan,and the United States prohibited international trade in automobiles,a likely effect would be that

Question

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If international trade in automobiles were prohibited, each firm would face a smaller market and would no longer be able to export to other countries. This would reduce competition, making the price effect a more significant consideration for each firm. As a result, automobile producers would need to adjust their production levels and pricing strategies to remain profitable in a smaller market. Option B is incorrect because the excess of price over marginal cost is a characteristic of monopolies or firms with market power, and a reduction in international trade would not necessarily affect this. Option C is incorrect because restricting trade generally reduces welfare for all countries involved. Option D is unrelated and does not follow logically from the premise.

If Nations Such as Germany,Japan,and the United States Prohibited International