-Given free trade,that is assuming no tariff,the outputs produced by domestic and foreign producers,respectively,would be:
Definitions:
Dividend Discount Model
A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.
Myron Gordon
An economist best known for developing the Gordon Growth Model, which is used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Burton Malkiel
An American economist and writer, most famous for his classic finance book "A Random Walk Down Wall Street."
Dividend Discount Model
A valuation method used to estimate the value of a stock by discounting predicted dividends to their present value.
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