It Is More Realistic to Assume Diminishing Returns to Specialization

Multiple Choice

It is more realistic to assume diminishing returns to specialization when evaluating the theory of comparative advantage.This is because:

A) there exist differences in the prices of resources in different countries.
B) resources can move freely from the production of one good to another within a country.
C) not all resources are of the same quality.
D) different goods use resources in the same proportions.