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Consider a Ricardian framework with two countries, A and B, and two products, G1 and G2. The following table shows the marginal product of labour
Consider a Ricardian framework with two countries, A and B, and two products, G1 and G2. The following table shows the marginal product of labour in G1 and G2 in both countries. G1 G2 Country 3 8 A Country 7 5 B Which one of the following independent scenarios is not possible at the trade equilibrium? O Compared to autarky, country A workers receive the same real wage in G2. O Relative price of G1 is 5/7. O Relative price of G1 is 8/3. O Compared to autarky, country B workers receive higher real wage in G1
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