Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive,

A) Mexico will produce more soybeans once trade is introduced.
B) the United States will produce more avocados once trade is introduced.
C) avocado prices in the United States will fall once trade begins.
D) soybean prices in Mexico will rise once trade begins.

C

Economics

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If a shirt manufacturer has a surplus of two shirts when they're priced at $14 each and a shortage of two shirts at $10 each, market equilibrium is likely at

a. $11 per shirt b. $12 per shirt c. $13 per shirt d. $15 per shirt

Economics

________: the change in total cost of production as the output or total product of the business is expanded

Fill in the blank(s) with correct word

Economics