In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. consider the following scenario:

without free trade, sapphira has market power as a local producer. once free trade is implemented in the local economy, sapphira is no longer able to raise its prices above competitive levels. answer choices shown below

1. increased competition

2. increased variety of goods

3.lower costs through economies of scale

4. enhanced flow of ideas

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)