Which statement is true?
A) In a small country, if the world price is below the domestic no-trade price, the country has a comparative advantage in that good.
B) In a small country, if the world price is above the domestic no-trade price, the country has a comparative disadvantage in that good.
C) In a small country, if the world price is below the domestic no-trade price, the country has a comparative disadvantage in that good.
D) Both a and b are true.
E) None of the above statements above.
Correct Answer:
Verified
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