The Flat Part of Home's Export Supply Curve in the Ricardian

question 186

Multiple Choice

The flat part of Home's export supply curve in the Ricardian model is due to the assumption that:

• A) Home has a comparative advantage in its export.
• B) Home has an absolute advantage in its export.
• C) the marginal product of labor is constant in the export good.
• D) Home has more labor than Foreign.

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