Which of the following assumptions is commonly used in classical trade theory?

CA Foundation · Business Economics · MTP · September 2026
Which of the following assumptions is commonly used in classical trade theory?
(A) A. increasing opportunity costs
(B) B. imperfect competition
(C) C. constant opportunity costs
(D) D. government intervention

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. constant opportunity costs

Topics: International Trade

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