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Microsoft Word - PS1.doc Use a two-good Richardian model (e.g.
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- Use a two-good Richardian model (e.g. wine and cheese, using the same notations as in Ch.3 of the textbook) to show that the wage in Home will be higher than in Foreign if the former has absolute advantages in producing both goods. Assume Home has a comparative advantage in producing wine.
Microsoft Word - PS1.doc
This question was answered on: Feb 21, 2020
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