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Assume that two countries, Home and Foreign, produce two goods: TVs and cars. Use the information below to answer the following questions: In the No-Trade
- Assume that two countries, Home and Foreign, produce two goods: TVs and cars. Use the information below to answer the following questions:
In the No-Trade equilibrium:
Home
Foreign
TV sector
Car sector
TV sector
Car sector
Wage = 8
Wage = ?
Wage* = 9
Wage* = 9
MPL = 4
MPL = ?
MPL* = ?
MPL* = 3
Price = ?
Price = 4
P* = 6
P* =?
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