The limits to mutually beneficial trade are determined by:
A) the exchange rate.
B) the opportunity costs of producing the two goods in each country.
C) tariffs and quotas imposed by the other country.
D) the terms of trade.
E) All of the above

Question

Quizplus · Accepted Answer

The limits to mutually beneficial trade are determined by the opportunity costs of producing the two goods in each country, as these costs define the comparative advantage and potential gains from trade.

The Limits to Mutually Beneficial Trade Are Determined By