Send by en 1 (a) What determines the internal equilibrium Pc/Pw in each nation in the absence of trade? (b) Starting wit

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Send By En 1 A What Determines The Internal Equilibrium Pc Pw In Each Nation In The Absence Of Trade B Starting Wit 1 (140.37 KiB) Viewed 60 times

Send by en 1 (a) What determines the internal equilibrium Pc/Pw in each nation in the absence of trade? (b) Starting with Fig. 2-12, explain what happens if the U.K. is in internal equilibrium in pro- duction and consumption at point B in the absence of trade, while the U.S. is in internal equi- librium in production and consumption at point B'. (c) What if the U.K. is in internal equi- librium in production and consumption to the right of B while the U.S. position is to the left of B'? W 2. 60 40- 20- 0 20 40 U.K. 60 80 100 120 140 160 C Fig. 2-12 W 120 100 80 60 40 20 0 20 40 US. 60 A' 80 100 C (a) Why is the production possibilities curve of each nation usually different? (b) Is trade still possible between two nations if they have identical production possibilities curves? (c) Un- two nations with different production pos-