If some industries exhibit internal increasing returns to scale in each country,we should not expect to see
A) perfect competition in these industries.
B) intra-industry trade between countries.
C) inter-industry trade between countries.
D) high levels of specialization in both countries.
E) increased productivity in both countries.

Question

Quizplus · Accepted Answer

Industries with internal increasing returns to scale tend to have imperfect competition due to the cost advantages of larger firms, making perfect competition unlikely.

If Some Industries Exhibit Internal Increasing Returns to Scale in Each