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The Gains from Trade Are Divided in Proportion to the Price

question 41

True/False

The gains from trade are divided in proportion to the price changes that trade brings to the trading countries.


Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a factor of production.

Marginal Revenue Product Schedule

A representation that shows how the additional revenue generated changes with the addition of one more unit of a resource.

Marginal Revenue Product Curve

A graphical representation that shows the additional revenue generated by employing one more unit of a resource, such as labor.

Marginal Revenue Product Curve

A graphical representation showing the additional revenue generated by employing one more unit of a resource.

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