According to new trade theory,which of the following could be a result of the economies of scale that may be achieved by individual firms as the size of the market expands due to trade?
A) Each nation can produce a wider variety of goods,minimizing its imports.
B) Each nation can simultaneously decrease the variety of goods available to its consumers and raise the costs of those goods.
C) Each nation may specialize in producing a narrower range of products,importing goods that it does not make.
D) Each nation can attain self-sufficiency in most products and eliminate exports.
Correct Answer:
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