Question

2. Under
type of cost difference international trade will not take place.
a. Absolute
b. comparative
d. Different
c. Equal​

Answer 1

Answer:

under type of cost difference international trade will not take place it is the difference in absolute production cost that causes the .... Thus, international trade is mutually beneficial

Answer 2

Option c is the correct answer.

Under equal type of cost difference international trade will not take place.

1. This implies that two countries produce two given commodities  at same cost difference.
2. Therefore they will abstain from specializing because they are not going to benefit from trade. So, they will produce both the commodities.
3. For example country 1 is producing 6 units of good X and 3 units of good Y. Country 2 produces 8 units of good X and 4 unit of good Y.