Question
Assume a Richardian-type global economy: Country A Country B Good X 2 3 Good Y 5 1 where each number in the table is output
Assume a Richardian-type global economy:
Country A
Country B
Good X 2 3
Good Y 5 1
where each number in the table is output per labor hour in each country. The trade equilibrium
price of good X is 1.2 units of good Y. All markets are under perfect competition.
1. In country A, does the condition of p = mc holds for good X under free trade?
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Agricultural Economics
Authors: Evan Drummond, John Goodwin
3rd edition
136071929, 978-0136071921
