Question: Indicate the equilibrium production and consumption point in autarky, using a PPF and a community indifference curve under increasing-opportunity-cost conditions. Why is this an equilibrium?

Indicate the equilibrium production and consumption point in autarky, using a PPF and a community indifference curve under increasing-opportunity-cost conditions. Why is this an equilibrium? What must occur for this country to gain from trade?

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Figures 1 and 2 in the text are the relevant diagrams Point E is the production equilibrium position ... View full answer

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