Assuming increasing cost conditions,trade between two countries would not be likely if they have:
A) Identical demand conditions but different supply conditions
B) Identical supply conditions but different demand conditions
C) Different supply conditions and different demand conditions
D) Identical demand conditions and identical supply conditions

Question

Quizplus · Accepted Answer

Trade is unlikely if both countries have identical demand and supply conditions, as there would be no comparative advantage or incentive to trade.

Assuming Increasing Cost Conditions,trade Between Two Countries Would Not Be