Which of the following is not an assumption of Ricardo's theory of comparative cost ?
Ricardo's comparative cost theory assumes constant returns to scale (output changes in exact proportion to labour input), perfect internal mobility of labour, no transport…
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Which of the following is not an assumption of Ricardo's theory of comparative cost ?
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Correct answer B
Ricardo's comparative cost theory assumes constant returns to scale (output changes in exact proportion to labour input), perfect internal mobility of labour, no transport costs, and laissez-faire.
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RPSC Assistant Professor (College Education)