Essay
-Refer to above figure. Now, suppose that the relative price of A is actually not higher than Albania's autarkic level of 1, but quite the opposite (e.g., PA/PB = 0.5). Would Albania still be able to gain from trade? If so, where would be its production point? Given the information in this question, where is Albania's comparative advantage?
Correct Answer:
Verified
Yes. As long as the world's terms of tra...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Related Questions
Q5: Q6: