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Suppose two countries use different combinations of inputs, such as labor and capital, to produce ...

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Suppose two countries use different combinations of inputs, such as labor and capital, to produce ...

Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies any one of the following except that

• the two countries use different technologies to produce the product.

• the inputs are not equally productive in the two countries.

• the prices of the inputs are not the same in the countries.

• one country is more efficient in the production of the good than the other.

Textbook

Microeconomics

Edition: 7^th

Authors: Hubbard, O'Brien

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