Economy, asked by pradeeprakshe143, 2 months ago

Hecksher-Ohlin theory states that the relative factor prices in two countries are

determined by _____?

Answers

Answered by ronaksarvaiya2
0

Explanation:

Hecksher-Ohlin theory states that the relative factor prices in two countries are

determined by demand for and supply of them._____

According to general equilibrium theory of value, relative prices of commodious are determined by demand for and supply of them. In the long-run equilibrium under conditions of perfect competition, relative prices of commodities, as determined by demand and supply, are equal to average cost of production.

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