Business, 29.01.2020 05:45 amortalstardev
Suppose that the u. s. has a comparative advantage in the production of spreadsheet software. as a result of opening up the market to international trade,
a.
u. s. citizens benefit from lower software prices, increasing consumer surplus in the market.
b.
u. s. producers benefit from higher software prices, increasing producer surplus in the market.
c.
u. s. software producers are harmed, since the price that these producers receive will decline as the price falls to the world price.
d.
total surplus in this market will remain unchanged, as the decline in benefits received by software producers exactly balances the increase in benefits received by us software consumers.
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