Two countries will choose to specialize and trade only if:

A. the terms of trade fall between their opportunity costs for producing the goods on their own.
B. the opportunity costs are the same for the two nations.
C. the opportunity costs are astronomically high for producing the goods on their own.
D. one country possesses the absolute advantage in both goods, but the comparative advantage in only one good.


A. the terms of trade fall between their opportunity costs for producing the goods on their own.

Economics

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