If Hong-Kong and Taiwan have identical production possibility curves that are subject to increasing opportunity costs, then
A. trade would depend on differences in demand conditions.
B. trade would depend on economies of large scale production.
C. trade would depend on the use of different currencies.
D. there would be no basis for gainful trade.
Answer:A
If Hong-Kong and Taiwan have identical production possibility curves that are subject to increasing opportunity costs, then
A. trade would depend on differences in demand conditions. B. trade would depend on economies of large scale production. C. trade would depend on the use of different currencies. D. there would be no basis for gainful trade.