If Production Is Subject to Economies of Scale, How Might

question 88

Multiple Choice

If production is subject to economies of scale, how might trading patterns be characterized?  

• A) Countries can gain from trade if each nation specializes. 
• B) One country will develop an absolute advantage in the production of all goods. 
• C) One country will develop a comparative advantage in the production of all goods. 
• D) Countries will NOT be able to gain from trade.

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