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Chako Chako
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8 years ago
If two countries engage in Free Trade following the principles of comparative advantage, then
A) MRTs but not relative prices will become equal in both countries.
B) trade will be unrestricted, regardless of relative costs and MRTs.
C) neither relative prices nor relative marginal costs (marginal rates of transformation-MRTs) in one country will equal those in the other country.
D) relative prices but not MRTs will become equal in both countries.
E) both relative prices and MRTs will become equal in both countries.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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Chako Author
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#2
8 years ago
Good answer, thank you
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#3
7 years ago
Good luck
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