Question

If the production transformation satisfies the convexity properties, then some trade can be shown to be better than no trade when

Answer 1

Answer:

Explanation:

The transformation curve can be either concave, convex or both at the same time. ... bundle inside the transformation (such as point A) can be better off by producing more of ... Transformation curve - Terms of trade ... adjacent figure, if the relative price was such as the one shown by the green straight line ..