In a Two-Nation, Two-Good World, If One Nation Is More

question 223

True/False

In a two-nation, two-good world, if one nation is more efficient in producing both goods than the
other nation, then the more-efficient nation cannot gain from trading with the other nation.

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Definitions:

Supply

The whole sum of a service or product that is up for sale at a certain price tier in a specific marketplace.

Decreasing-Cost Industry

An industry where the average cost of production decreases as the industry's output increases, often due to economies of scale.

Long-Run Supply Curve

A graphical representation showing the relationship between the market price of a good and the quantity of it that producers are willing to supply when all production inputs are variable.

Downward-Sloping

Describes a line or curve on a graph that descends from left to right, indicating a negative relationship between two variables.