An industry is characterized by scale economies, and exists in two cou

An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country’s industry, then

A) consumers in both countries would have more varieties and lower prices.
B) consumers in both countries would have higher prices and fewer varieties.
C) consumers in the importing country only would have higher prices and fewer varieties.
D) consumers in the exporting country only would have higher prices and fewer varieties.
E) consumers in both countries would have fewer varieties at lower prices.

ANSWER

A