Ask Question
7 June, 01:03

In Home, the autarky relative price of apples is 5. In Foreign, the autarky relative price of apples is7. After opening to trade, which country will specialize in producing apples?

a. Home

b. Foreign

+3
Answers (1)
  1. 7 June, 03:39
    0
    The answer is a) home

    Explanation:

    Home ' s apple price is lower that of foreign, and this is likely to give Home an advantage in international trade. The lower price could mean Home has economies of scale (producing large quantities at relatively lower costs).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In Home, the autarky relative price of apples is 5. In Foreign, the autarky relative price of apples is7. After opening to trade, which ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers