Consider the possibility of trade between countries.When opportunity costs are identical between two countries for all goods,

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Quizplus · Accepted Answer

When opportunity costs are identical between two countries for all goods, there can be no gains from trade based on comparative advantage. However, if there are economies of scale in some of the products, trade can still be beneficial as it allows for larger production volumes, reducing average costs and potentially leading to gains from trade.

Consider the Possibility of Trade Between Countries