In the specific factors model,at the general equilibrium,the slope of the Production possibilities frontier (PPF)is

Question

Quizplus · Accepted Answer

In the specific factors model at general equilibrium, the slope of the PPF indeed reflects all the given options: it equals the ratio between the marginal products of labor in each sector (A), matches the ratio between the prices for textiles and food (B), and is tangent to an iso-value line (C), indicating the optimal production point where the economy cannot increase the production of one good without reducing the production of another.

In the Specific Factors Model,at the General Equilibrium,the Slope of the Production