By comparing the world price of pecans to India's domestic price of pecans,we can determine whether India
A)will export pecans (assuming trade is allowed).
B)will import pecans (assuming trade is allowed).
C)has a comparative advantage in producing pecans.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

If the world price of pecans is lower than India's domestic price, then India will import pecans. If the world price of pecans is higher than India's domestic price, then India will export pecans. If India has a comparative advantage in producing pecans, then it will be able to produce pecans at a lower cost than other countries.

By Comparing the World Price of Pecans to India's Domestic