Economics · International Trade Theorems
Which of the following are relevant conditions assumed by the Factor Price Equalization theorem? A. The countries are characterized by different factor endowments B. The countries are characterized by different production functions C. The industries are characterized by different factor intensities D. Each country will export the commodity which uses its abundant factor
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A, B and C only
- 2A, C and D only✓
- 3A, B and D only
- 4B, C and D only
Correct answer
A, C and D only
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