ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Consider two countries, Korea and Malaysia, and two goods, lumber and automobiles. Korea’s
1. Draw the PPFs of both countries with lumber on the horizontal axis.
2. Illustrate the autarky equilibria in both countries given our strong assumption about preferences (e.g. consumption in both countries always lies on the same line from the origin).
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