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Prior to International Trade, the Price of Good X Is

Question 132

Multiple Choice

Prior to international trade, the price of good X is lower in country A than in country B. This means that we know that


A) country A has a comparative advantage in the production of product X.
B) country A has an absolute advantage in the production of product X.
C) country B has a comparative advantage in the production of product X.
D) country B has an absolute advantage in the production of product X.

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