Question: Visualizing the factor - endowment theory Consider the two hypothetical nations of Grork and Ferville. Suppose they both produce only two goods, robot vacuum cleaners

Visualizing the factor

-

endowment theory

Consider the two hypothetical nations of Grork and Ferville. Suppose they both produce only two goods, robot vacuum cleaners and plastic army men. Each country faces a trade

-

off when producing the two goods. The following graph displays the respective production possibilities frontiers

(

PPF

)

for Grork and Ferville.

Visualizing the factor - endowment theory

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