5.Consider any industry that has the effect of clustering. The world consists of only A and B countries, and under self-sufficiency, the domestic price of A country is PA, the domestic price of B country is PB, and the international equilibrium price is P under free trade. Choose the one that is clearly correct from the fingerprints shown below. A. If country B's output is greater than that of country A under self-sufficiency, free trade eventually causes only country B to produce goods. B. If country A's long-term supply curve is located below country B's long-term supply curve, free trade causes country A to produce the goods. C. If country B dominates the global market after the start of free trade, it must be P>PB. D. After the start of free trade, PA
5.Consider any industry that has the effect of clustering. The world consists of only A and B countries, and under self-sufficiency, the domestic price of A country is PA, the domestic price of B country is PB, and the international
A. If country B's output is greater than that of country A under self-sufficiency, free trade eventually causes only country B to produce goods.
B. If country A's long-term supply curve is located below country B's long-term supply curve, free trade causes country A to produce the goods.
C. If country B dominates the global market after the start of free trade, it must be P>PB.
D. After the start of free trade, PA<P<PB or PB<P<PA must eventually be established.
E. Under self-sufficiency, if the domestic demand of country A is greater than that of country B, free trade eventually causes only country A to produce goods.
F. Under self-sufficiency, if country A's domestic price is much lower than country B's, and country B is in a competitive position, it can be said that country B's government's market intervention (trade policy) is at least temporarily justified
Step by step
Solved in 2 steps
