Once engaged in international trade,Asgard decides to specialize in producing armor,according to its comparative advantage.What can we conclude about what happens next?

Question

Quizplus · Accepted Answer

By specializing in producing armor, Asgard will be able to produce it more efficiently and effectively, leading to an increase in the quantity of armor produced in Asgard. As a result, Asgard will be able to export more armor, leading to an increase in demand for armor. However, it is not certain whether the world price of armor will increase or decrease.

Once Engaged in International Trade,Asgard Decides to Specialize in Producing