The _____________________ is given by the slope of the common tangent to the nation's production frontier and indifference curve at the autarky point of production and consumption.
A)equilibrium-relative commodity price in isolation
B)revealed comparative advantage
C)equilibrium-relative commodity price with trade
D)marginal rate of substitution

Question

Quizplus · Accepted Answer

The equilibrium-relative commodity price in isolation is determined by the slope of the common tangent to the nation's production frontier and indifference curve at the autarky point of production and consumption, reflecting the trade-off between goods that the economy faces without international trade.

The _____________________ Is Given by the Slope of the Common