Suppose that Home has 2,400 workers, but they are only half as productive in both industries as

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Suppose that Home has 2,400 workers, but they are only half as productive in both industries as we have been assuming. Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade compare with those in the case described in problem 4?

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International Economics Theory and Policy

ISBN: 978-0134519579

11th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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