In the 2- factor,2- good Heckscher- Ohlin model,the production possibility frontier is kinked when
A)there is no factor substitution in production.
B)transportation costs are very high.
C)the opportunity cost of production is constant.
D)there are unemployed factor resources.
E)a country does not engage in trade.

Question

Quizplus · Accepted Answer

The Answer is A

In the 2- Factor,2- Good Heckscher- Ohlin Model,the Production Possibility