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Chako Chako
wrote...
Posts: 2948
8 years ago
In the 2-factor, 2 good Heckscher-Ohlin model, the production possibility frontier is kinked when
A) transportation costs are very high.
B) there are unemployed factor resources.
C) there is no factor substitution in production.
D) a country does not engage in trade.
E) the opportunity cost of production is constant.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 174 times
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machukianmachukian
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Posts: 2946
8 years ago
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Chako Author
wrote...
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
wrote...
8 years ago
Don't forget to vote my answer as best Nerd Face
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