The _____ model analyzes trade under the assumption that opportunity costs are constant and therefore production possibility frontiers are straight lines.

Question

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The Ricardian model, also known as the theory of comparative advantage, assumes constant opportunity costs and straight-line production possibility frontiers to analyze trade patterns between two countries based on their relative efficiencies in production. The other models listed do not rely on these assumptions.

The _____ Model Analyzes Trade Under the Assumption That Opportunity