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edehghany edehghany
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When specialization according to comparative advantage also makes economies of scale possible,

▸ the production possibilities boundaries of all trading countries will shift inward.

▸ there will be additional gains from trade.

▸ trade is not beneficial to the country that has the absolute advantage in both goods.

▸ it will be beneficial for all trading countries to impose tariffs.

▸ costs will rise in all trading countries.
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Microeconomics

Microeconomics


Edition: 17th
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alexisgardner09alexisgardner09
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