The comparative advantage theory is considered to have ignored which of the following statements?
A) Constant returns to specialization implies a concave Production Possibility Frontier.
B) Constant returns to specialization suggests that the gains from specialization are likely to be exhausted before specialization is complete.
C) It is feasible for a country to specialize to a point where the resulting gains from trade are outweighed by diminishing returns.
D) Different goods use different resources in different proportions.
Correct Answer:
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