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

Question 65

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) the opportunity cost of production is constant.
C) there are unemployed factor resources.
D) a country does not engage in trade.
E) transportation costs are very high.

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