As a result of international trade,specialization in production tends to be:
A) Complete with constant costs--complete with increasing costs
B) Complete with constant costs--incomplete with increasing costs
C) Incomplete with constant costs--complete with increasing costs
D) Incomplete with constant costs--incomplete with increasing costs

Question

Quizplus · Accepted Answer

With constant costs, countries can fully specialize in producing goods where they have a comparative advantage. However, with increasing costs, specialization is incomplete because as production increases, the opportunity cost rises, making it less advantageous to specialize fully.

As a Result of International Trade,specialization in Production Tends to Be