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In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario:Without free trade, Rooby has market power as a local producer. Once free trade is implemented in the local economy, Rooby is no longer able to raise its prices above competitive levels. The previous scenario represents which of the following benefits of free trade?a. Increased variety of goodsb. Enhanced flow of ideasc. Increased competitiond. Lower costs through economies of scale
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In addition to the positive welfare effects that free trade has on an economy, there are a variety o...
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