Another one on PPF and Trade
16 views
Skip to first unread message
Suruchi Sawhney
Jun 2, 2012, 6:23:33 AM6/2/12
to econs...@googlegroups.com
I am getting
p1/ p2 = min{ w/2 , r/4 } / 2w +r
and
With international trade
{w,r} = { 1/6 , 2/3 } or {1/3 , 1/3 }
I am unable to comprehend how can we chose unique equilibrium value for wage and rental rate :(
p1/ p2 = min{ w/2 , r/4 } / 2w +r
and
With international trade
{w,r} = { 1/6 , 2/3 } or {1/3 , 1/3 }
I am unable to comprehend how can we chose unique equilibrium value for wage and rental rate :(
Reply all
Reply to author
Forward
0 new messages