According to the two-country general equilibrium (PPF/indifference curves) model, if both countries' tastes (indifference curves) are identical, then:
A) relative prices must be the same in both countries.
B) neither country can, under any circumstance, enjoy a comparative advantage.
C) neither country will, under any circumstance, find international trade to be welfare-increasing.
D) All of the above.
E) None of the above.
Correct Answer:
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