Use a general equilibrium depiction of trade equilibrium in the HO model (e.g., either graph Figure 4.4) to prove that complete specialization in the production of exports will, in general, lower the standard of living of an economy relative to incomplete specialization.

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D (Ps/PT) A's Imports A's exports XA Lu E S TA Y B's exports XB VB B's Imports N CB (Ps/P S 50