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true/false According to the class textbook. The principle of comparative advantage helps to explain the gains from specialization and trade, but it raises a couple
true/false According to the class textbook. The principle of comparative advantage helps to explain the gains from specialization and trade, but it raises a couple of related questions. What determines the price at which trade takes place? How are the gains shared between the trading parties? The precise answers to these questions are beyond the scope of this chapter, but here is a general rule: For both parties to gain from trade, the price at which they trade must lie between their opportunity costs
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