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-Refer to Above Figure

question 58

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  -Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5?  Explain why. What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?
-Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5?
Explain why. What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?

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