(Figure: A Firm's Production With and Without Offshoring II) If the price of R&D decreases, then it is likely that the home country:
A) could see a decline in the amount of output produced.
B) will see a loss in comparative advantage in R&D.
C) could see a decline in the amount of output produced and a loss in comparative advantage in R&D.
D) could see an increase in the amount of output produced.
Correct Answer:
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