When two nations have achieved identical relative prices of the two
Traded products, we have:
A)a standoff.
B)a stalemate.
C)international trade equilibrium.
D)absolute advantage once again.

Question

Quizplus · Accepted Answer

When two nations have achieved identical relative prices of the two traded products, it refers to international trade equilibrium, which means that there is no more incentive for either country to trade with the other in terms of these two goods as they are now equally efficient at producing them. A standoff or stalemate imply a situation where there is a deadlock or impasse, while absolute advantage refers to a scenario where one country can produce a good at a lower cost than another country.

When Two Nations Have Achieved Identical Relative Prices of the Two