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In: Economics

If two countries have identical production possibility frontiers, then A. there is a set of prices...

If two countries have identical production possibility frontiers, then

A. there is a set of prices at which both countries will gain from trade

B. they have identical marginal products of labor

C. they have different opportunity costs of production.

D. there is no scope for trade

Solutions

Expert Solution

Answer option) there is a set of prices at which both countries will gain from trade

If two countries have identical production possibility frontiers, then there is a set of prices at which both countries will gain from trade

Rahul Sunny answered 2 years ago
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