For each of the following cases below determine the following: (a) the pre-trade relative prices; (b) the
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For each of the following cases below determine the following:
(a) the pre-trade relative prices;
(b) the direction of comparative advantage; and
(c) the limits to the relative wage rate.
Transcribed Image Text:
Hours of Labor Required to Produce S or T Case 1 Case 2 A B A B F 9 15 S 10 6 T Case 3 3 12 T 4 6 Case 4 A B A B S 9 8 T 18 4 T 2 3
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