Final answer:
The correct answer is option C. It promotes monopolies.
Step-by-step explanation:
In addition to the benefits of human and geographical specialization, some side benefits to free trade include the promotion of competition and the encouragement of innovation. It is notable that free trade expands the range of product choices for consumers, thereby increasing variety and promoting competition among firms.
This competitive environment incentivizes companies to innovate, leading to a more dynamic market, better products, and potentially lower prices. On the other hand, free trade does not promote monopolies; those occur when competition is reduced or eliminated, which is the opposite of what occurs in a healthy free trade environment.
Lastly, since free trade offers a wider variety of products, option A is incorrect since it suggests a narrow range of product choices, while in reality, free trade broadens consumer options.