The Introduction of Decreasing Costs into the Theory of Comparative

Multiple Choice

The introduction of decreasing costs into the theory of comparative advantage:

A) makes it possible for trade to be mutually advantageous even if there are no pre-trade differences in comparative costs between two countries.
B) reduces the gain from international trade.
C) means, unlike the constant-cost case, that specialization will probably not be complete.
D) may be an interesting theoretical abstraction, but has little relevance in explaining why specialization and trade have, in fact, occurred.
E) would explain none of the above.