If the united states were to produce all of its own steel, rather than importing large quantities of steel from other nations, the effect would be:
a. to make steel consumers, such as auto manufacturers, better off
b. to lower steel prices, since steel would not have to be transported as far
c. to draw resources necessary to make steel away from the rest of the economy, slowing the economy as a whole
d. to improve the well-being of foreign steel producers, since they would not have to ship steel all the way to the united states

The correct answer is "C. to draw resources necessary to make steel away from the rest of the economy, slowing the economy as a whole".

Explanation: If the United States were to produce all of its own steel, rather than importing large quantities of steel from other nations, the effect would be: to draw resources necessary to make steel away from the rest of the economy, slowing the economy as a whole.

The result would be the opposite of the one sought, since the United States seeking to produce all its steel so as not to import large quantities, would slow down the economy, this means that the economy would become flat, or in decline in which companies and consumers tend to make less decisions of purchase.

In an oligopoly, few companies produce the same product and in a monopolistic competition some companies produce similar products, but each one of them produces a slightly different product.

Let's imagine a market in which there are only 2 producers of chocolate- that is an oligopoly (it would not be one if there were 30) .

Now, let's imagine that one of them only produces dark chocolate, and the other only milk chocolate - now, that's a monopolistic competition!