# By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ? Correct Answer: C. The volume of trade to be less than when there are no transportation costs. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

Direct Answer & Quick Reference

The correct option is **C. The volume of trade to be less than when there are no transportation costs**.

A. The prices of trade goods to be lower than when there are no transportation costs

B. specialization to stop when the production costs of the trading partners equalize

C. The volume of trade to be less than when there are no transportation costs **(Correct Answer)**

D. The gains from trade to be greater than when there are no transportation costs

✨ Explain with AI

Verified Key: C. The volume of trade to be less than when there are no transportation costs
Solved by 3,691+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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