When Specialization According to Comparative Advantage Also Makes Economies of Scale

question 10

Multiple Choice

When specialization according to comparative advantage also makes economies of scale possible,

• A)costs will rise in all trading countries.
• B)trade is not beneficial to the country that has the absolute advantage in both goods.
• C)the production possibilities boundaries of all trading countries will shift inward.
• D)there will be additional gains from trade.
• E)it will be beneficial for all trading countries to impose tariffs.

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