Tastes are assumed to be identical across countries to rule out differences in demand determining the direction of trade

In the above figure, if the quantity is equal to 2,500,000 units, the deadweight loss is equal to

A) area B + area F. B) area D + area I. C) area C. D) area G + area H. E) None of the above answers is correct because the deadweight loss is equal to zero.

A monopolistically competitive market is characterized by

a. free entry, but not differentiated products. b. differentiated products, but not long run profits. c. long run profits, but not many firms. d. many firms, but not free entry.