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The Impact of Increasing, as Opposed to Constant, Costs Is

Question 46

Multiple Choice

The impact of increasing, as opposed to constant, costs is to


A) intensify and prolong the comparative advantages that any nation may have initially.
B) expand the limits of the terms of trade.
C) cause the bases for further specialization to disappear as nations specialize according to comparative advantage.
D) cause nations to realize economies of scale in those products in which they specialize.

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