Suppose television production requires 20 units of labor and 4 units of land. Rice requires 1 unit
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose television production requires 20 units of labor and 4 units of land. Rice requires 1 unit of labor and 4 units of land.
- If there is no trade, which good will be relatively cheaper in each country? If a free trade occurs, what will happen with relative prices of goods?
- If a free trade occurs, What will happen with the factors prices? Does this happen in the real world? Explain why yes or why not.
Related Book For
Posted Date: