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When Cost Per Unit of Production for Two Goods Declines

Question 71

Multiple Choice

When cost per unit of production for two goods declines as more are produced, a country that trades can


A) rationalize production of both in order to enjoy the benefits of trade.
B) expand production of both products.
C) reduce the size of the market for the product it produces.
D) contract production of both products.
E) expand production of one product and contract production of the other.

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