-Refer to above figure. Now, suppose that the relative price of A is actually not higher than Albania's autarkic level of 1, but quite the opposite (e.g., PA/PB = 0.5). Would Albania still be able to gain from trade? If so, where would be its production point? Given the information in this question, where is Albania's comparative advantage?
Definitions:
Market
People with both the desire and the ability to buy a specific offering.
Competitive Set
A group of firms producing products or services that compete directly with each other in terms of features, benefits, and prices.
Product Grouping
The practice of organizing products in categories or collections based on similarities, purpose, or relevance to facilitate marketing, sales, and customer convenience.
Goals and Objectives
Specific outcomes that an organization or individual aims to achieve within a set timeframe.
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