00:01
So here we're talking about the benefits of international trade, right? and we have this story about before some person has market power, and then after trade happens, because trade means that other people are let into the country, right? they are reduced to competition.
00:22
This is good, right? market power is associated with deadweight loss and profits, right? when you have market power, it means that you can raise your price to squeeze customers.
00:36
But now with trade, because there's this international competition, you can no longer squeeze your customers, because if you squeeze your customers, they'll buy from your international competition.
00:46
Right.
00:47
So which of these is the benefit of free trade being stalled? being told about, increased variety.
00:57
Well, this isn't it, because there's nothing in this story about variety.
01:01
It's the story about one firm producing the same product.
01:04
Nothing about variety...