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When Specialization According to Comparative Advantage Also Makes Economies of Scale

Question 22

Multiple Choice

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


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

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