Ricardian model trade is based on advantageous production


In Ricardian model, trade is based on advantageous production that arises from differences in technological advancements. These differences cause:

a. absolute advantages which provide the basis for trade.
b. comparative advantages which provide the basis for trade.
c. absolute and comparative advantages which are both needed to determine specialization patterns.
d. neither advantages nor disadvantages in terms of specialization and gains from trade.

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Microeconomics: Ricardian model trade is based on advantageous production
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