Under the conditions offree trade and monopolistic competition, which of the following is a likely

Under the conditions of free trade and monopolistic competition, which of the following is a likely

outcome as an industry adjusts to its long run equilibrium?

1Domestic firms will always be provided cash subsidies.

2Some domestic firms will go bankrupt and exit from the industry.

3Consumers will not benefit at all from trade.

4Foreign firms will sell the product at a higher price in the export market.