If Canada has the same opportunity costs as another country in producing products, then O A....

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If Canada has the same opportunity costs as another country in producing products, then O A. no trade would occur because Can

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Answer 1

Answer #1

Option A.

We know that the opportunity cost shows the cost incurred by a country when it decides to produce certain good by giving up the production of another good.
Difference in comparative advantage between countries can be determined by the difference in opportunity costs across those countries.
If the opportunity costs between two countries are the same, then there won't be any comparative advantage for both the countries and hence both the countries have nothing to gain from trade and specialization.
Therefore in the above scenario, no trade would occur because Canada would not have a comparative advantage in producing anything as it has the same opportunity costs as another country in producing product's.

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Answer 2

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