When there is free trade in a commodity, as opposed to no trade,
and there are no consumption externalities,
1. the marginal benefit from purchasing another
unit of an imported good increases because of the increase in efficiency.
2. the marginal benefit from purchasing another
unit of an imported good from foreigners differs from the marginal
benefit from purchasing it from domestic producers.
3. the marginal benefit from purchasing another
unit of an imported good equals the domestic producers' marginal
opportunity cost.
4. none of the above are true.
Choose the option that yields the correct answer.