The figure given below shows a shift in the production-possibility curve of a country from AB to AC. Here, S1 and C1 are the initial production and consumption points respectively. S2 and C2, on the other hand, are the final production and consumption points respectively. Which of the following is illustrated by this figure? 
A) The mechanism of reversal in trade pattern
B) The validity of the product cycle hypothesis
C) The immiserizing growth effect in a large country
D) The benefits of trade in a small country
Correct Answer:
Verified
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