Question

If two nations have straight-line production possibilities curves, Multiple Choice there will be a basis for mutually advantageous trade provided the slopes differ. there will be a basis for mutually advantageous trade whether the slopes are equal or not. then their trading possibilities curves must lie inside the production possibilities curves. there will be no basis for mutually advantageous trade.

Answer 1

there will be a basis for mutually advantageous trade provided the slopes differ.

Step-by-step explanation:

The Production Possibility Curve (CPP) is a tool that demonstrates, in graphic format, the production capacity of a given product. This feature can even be used to compare the performance of two different products. If two nations have linear production possibilities curves, there will be a basis for mutually advantageous trade, provided that the inclinations are different, because it shows that one nation can produce and profit without interfering with another nation's production and profit.