A monopolistic competitor faces a horizontal demand curve

A monopolistically competitive firm produces a good or service that has no close substitutes

Indicate whether the statement is true or false

Tijuana, Mexico is across the border from San Diego, California. It has become a world-leading producer and exporter of television sets and computer monitors, which it assembles in modern factories owned by multinational consumer electronics firms such as Sony. Initially, these electronics were produced in the industrialized countries of their parent companies, and after several years, the

production moved to Tijuana. This is an example of A) the product cycle. B) intraindustry trade. C) the specific factors model. D) the magnification effect.