Assume that transportation costs are especially high for Widgets in the two- country,two- product Ricardian model,and Country A enjoys a comparative advantage in Widgets,then
A) country B must also enjoy a comparative advantage in Widgets.
B) country B may end up exporting Widgets.
C) country A will still export Widgets.
D) trade may be impossible between the two countries.
E) country A may switch to having a comparative advantage in the other good.
Correct Answer:
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