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The diminishing returns to specialization suggests that it is worthwhile for companies to specialize until that point where the resulting gains from trade are outweighed by diminishing returns.
This diminishing return happens when the resources can move freely from the production of one good to another within a country.
However, its suggests that it is worthwhile for companies to specialize until that point where the resulting gains from trade are outweighed by diminishing returns.
Therefore, the Option A is correct.
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