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When Countries Create a Free Trade Area and Increase Market

Question 39

Multiple Choice

When countries create a free trade area and increase market size, the schedule relating


A) price to the number of firms in the market shifts to the left.
B) average total cost to the number of firms in the market shifts to the left.
C) average total cost to the number of firms in the market shifts to the right.
D) price to the number of firms in the market shifts to the right.
E) average total cost to the number of firms in the market remains constant.

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