In order for mutually beneficial trade to occur,what level must the exchange rate between the goods involved be set at?
A) at a level where each country can export a good at a price above the opportunity cost of producing the good in the domestic market
B) at a level where each country will specialize in the production of those goods in which it has an absolute advantage
C) at a level where the exchange ratio is exactly equal to the opportunity cost of producing the good in each country
D) at a level where each country can import a good at a price above the opportunity cost of producing the good in the domestic market
Correct Answer:
Verified
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