Which of the following statements are true regarding international trade under imperfect competition?
1. Markets may lead to higher prices for consumers due to a lack of competition.
2. Firms may engage in price discrimination across different countries.
3. The existence of oligopolies can lead to trade wars.
4. Imperfect competition eliminates the gains from trade.
1
Only 1 and 2 are correct
2
Only 3 and 4 are correct
3
All statements are correct
4
Only 1, 2, and 3 are correct
5
Question Not Attempted