In the Factor-Endowment Model,the Production Possibility Curve Is Assumed to Be

question 36

Multiple Choice

In the factor-endowment model,the production possibility curve is assumed to be bowed outward.This is the result of

• A) economies of large-scale production
• B) constant opportunity cost
• C) all factors of production are perfectly substitutable for each other
• D) different factor endowments and different factor intensities in the production of the two products

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