The New Trade Theory differs from the Ricardian and Factor Proportions theories in that it allows for O Average costs to fall as an industry employs proportionally more of all factors of production. O...

Extracted text: The New Trade Theory differs from the Ricardian and Factor Proportions theories in that it allows for O Average costs to fall as an industry employs proportionally more of all factors of production. O Firms to be perfectly competitive O One country to export a good that is not the same as the good that another country exports O Workers in one country to be more productive than workers in another.