Suppose the production possibilities for two countries, producing ...

[codyclark]

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Assuming free trade between these two countries, Canada will produce food
◦ as long as people are willing to give up more than 1/2 unit of clothing to get a unit of food.
◦ as long as any positive amount of food is demanded.
◦ as long as people are willing to give up at least 1 unit of clothing to get a unit of food.
◦ as long as more than 10 units of food are demanded.

[tdewitt]

as long as people are willing to give up at least 1 unit of clothing to get a unit of food.

[CQXA]

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. If production occurs at the kink on the joint production possibility frontier,
◦ the U.S. will specialize in clothing and Canada will specialize in food.
◦ joint output is minimized.
◦ the U.S. will specialize in food and Canada will specialize in clothing.
◦ each country will devote half of its resources to each industry.

[Li Jun]

the U.S. will specialize in food and Canada will specialize in clothing.

[CQXA]

TY

[Li Jun]

You're welcome

[iveyjurea]

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Suppose each country is in competitive equilibrium prior to free trade being allowed. Once free trade is allowed, the price of food will be
◦ one-half the price of clothing.
◦ two times the price of clothing.
◦ equal to the price of clothing.
◦ somewhere between one-half the price of clothing and the price of clothing, depending upon the relative bargaining power of the two countries.

[epscape]

somewhere between one-half the price of clothing and the price of clothing, depending upon the relative bargaining power of the two countries.

[meagbuch]

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Once free trade is allowed, Canada will produce
◦ no clothing.
◦ 20 units of clothing.
◦ 5 units of clothing.
◦ 10 units of clothing.

[lorealeza77]

10 units of clothing.