Top Posters
Since Sunday
p
36
33
C
18
I
13
n
13
a
12
11
C
11
s
11
11
m
11
10
New Topic  
wrote...
Posts: 850
Rep: 0 0
A year ago
Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Suppose each country is in competitive equilibrium prior to free trade being allowed. Once free trade is allowed, the price of food will be
A) two times the price of clothing.
B) equal to the price of clothing.
C) one-half the price of clothing.
D) somewhere between one-half the price of clothing and the price of clothing, depending upon the relative bargaining power of the two countries.
Textbook 

Microeconomics


Edition: 6th
Author:
Read 14 times
2 Replies
Replies
Answer verified by a subject expert
wrote...
Posts: 432
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything.
D
1

Related Topics

wrote...
A year ago
Great answer, great website
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  139 People Browsing
Your Opinion
Do you believe in global warming?
Votes: 186

Related Images
 7546
 707
 99