Carefully explain why there are gains from intraindustry trade
What will be an ideal response?
The increased size of markets leads to lower costs through the effect of scale economies. At the same time, competition among firms forces them to pass on their lower costs to consumers in the form of lower prices. The expansion of the market that occurs with trade leads eventually to an increase in the number of firms (although the distribution of firms between countries is unclear). Consumers benefit both from lower prices and from an increase in the variety of goods available to them.
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Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position,
Oliver will definitely receive at least ________ votes and George will definitely receive at least ________ votes. A) 4; 4 B) 4; 5 C) 5; 4 D) 5; 5
Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, Alice's preference for mayor is
A) Oliver Cousins. B) George Glass. C) Alice is indifferent between the two candidates. D) Alice definitely does not like either candidate.