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"" The theory of comparative advantage shows that the gains from international trade do not just result from the absolute advantage of producing at lower cost, but also from pursuing comparative advantage and producing at a lower ________________.

Respuesta :

Answer: Opportunity cost

Explanation:

According to the theory of comparative advantage, a country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.

So, gains from trade would results not only from producing at a lower cost that is an absolute advantage but also from lower opportunity cost that is a comparative advantage.

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