The principle of comparative advantage does not provide answers to certain questions.One of those questions is
A)Is it possible for specialization and trade to benefit more than one party to a trade?
B)Is it possible for specialization and trade to increase total output of traded goods?
C)Do opportunity costs play a role in people's decisions to specialize in certain activities?
D)What determines the price at which trade takes place?

Question

Quizplus · Accepted Answer

The principle of comparative advantage assumes that trade will occur at a mutually beneficial price determined by the supply and demand for the goods being traded. However, it does not explain exactly how the market will determine that price. Therefore, D is the correct answer.

The Principle of Comparative Advantage Does Not Provide Answers to Certain