6.Explain, verbally and analytically using a 'Factor Specific' Model, why it is that owners of flexible factors are more likely to benefit from trade than the owners of factors that are fixed to one type of production. Be complete in your answer - be sure to include diagrams as appropriate. (50 points)

• Discuss the costs and benefits of collective action with regards to trade legislation. Why is it that trade restrictions are so prevalent when it is so easy to prove their negative impact on general welfare? (25 points)