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For Two People Who Are Planning to Trade Two Different

Question 51

Multiple Choice

For two people who are planning to trade two different goods, each will have a comparative advantage in a different good unless,


A) they have exactly the same opportunity cost.
B) they have agreed in advance on who will produce what and how much each will produce.
C) the terms of trade are such that neither can gain from trade.
D) one person has an absolute advantage in both products.

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