With free trade under constant costs:
A) neither country will completely specialize its production.
B) as least one country will completely specialize its production.
C) at least one country will consume inside its production possibilities frontier.
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

Under the assumption of constant costs and free trade, at least one country will find it beneficial to specialize completely in the production of the good in which it has a comparative advantage, leading to more efficient global production and trade benefits.

With Free Trade Under Constant Costs