Multiple Choice
In a two-nation, two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have
A) no comparative advantage over the other nation.
B) a comparative advantage in one good and a comparative disadvantage in the other good.
C) no absolute advantage over the other nation.
D) an absolute advantage in one good and an absolute disadvantage in the other good.
Correct Answer:
Verified
Correct Answer:
Verified
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