Using the following graph for substitutable inputs case, explain the Stolper-Samuelson theorem. T T 688

Using the following graph for substitutable inputs case, explain the Stolper-Samuelson theorem.

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T T 688 ४ ४ ४ ४ ४ ४ T Outputs IT 130 120 110 100 && 90 80 70 60 30 T 15 5 I Stage 1 Ep>1 [Increasing return] Stage 2 0 < Ep <1 [Decreasing return] 2 25 3 375 4 Units of Labour Stage 3 Ep20 Total Output [Negative return] Average Product Marginal Product 5 56 6 7 T T 688 ४ ४ ४ ४ ४ ४ T Outputs IT 130 120 110 100 && 90 80 70 60 30 T 15 5 I Stage 1 Ep>1 [Increasing return] Stage 2 0 < Ep <1 [Decreasing return] 2 25 3 375 4 Units of Labour Stage 3 Ep20 Total Output [Negative return] Average Product Marginal Product 5 56 6 7

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The StopperSamuelson Theorem can be thought as a fundamental theorem in Huckster Ohlin trade ... View the full answer