If countries 1 and 2 produce only two goods, A and B, and they have the same opportunity cost for the production of good A (and thus good B), then
A) each country will specialize in the production of one good and engage in trade.
B) neither country will specialize in the production of a good, but both will engage in trade.
C) one country will specialize in the production of a good, and both will engage in trade.
D) neither country will specialize in the production of a good, and there will be no incentive for trade.
D
Economics
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