Ask Question
3 March, 14:00

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. 3 March, 14:37
    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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers