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.

---

Definitions:

Retail Price

The total cost at which a product is sold to the consumer, including overheads, profit margins, and taxes.

Markdown

A reduction from the original or retail price of goods to increase sales or clear inventory.

Competitor

An individual or company that competes against others for the same market share or audience in an industry.

Quick Sale

A quick sale refers to the rapid sale of assets, typically real estate, often at a lower price to ensure a fast transaction.