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In the 2- Factor,2- Good Heckscher- Ohlin Model,the Production Possibility

Question 33

Multiple Choice

In the 2- factor,2- good Heckscher- Ohlin model,the production possibility frontier is kinked when


A) there is no factor substitution in production.
B) transportation costs are very high.
C) the opportunity cost of production is constant.
D) there are unemployed factor resources.
E) a country does not engage in trade.

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