Refer to the above diagram pertaining to two nations and a specific product.In equilibrium, the nation represented by lines FA and FC will:

Question

Quizplus · Accepted Answer

The nation represented by lines FA and FC is producing at a higher cost than the nation represented by lines GB and GD. Therefore, it is more efficient for the nation represented by FA and FC to import the product H from the nation represented by GB and GD, rather than producing it domestically. Thus, in equilibrium, the nation represented by FA and FC will import H from the nation represented by GB and GD, making option B the correct answer.

Refer to the Above Diagram Pertaining to Two Nations and a Specific