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Equalisation of Factor Prices by Sufficiently Diversified Production Under Conditions of Balanced Demand

  • Paul A. Samuelson

Abstract

If we have two factors (‘labour and land’) and one good, the slightest geographical difference in factor endowments will make factor prices unequal. If a second good is added that differs not at all in factor intensities from the first, the same conclusion holds.

Keywords

Factor Intensity International Trade Factor Price Factor Endowment Factor Share 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Paul A. Samuelson 1973

Authors and Affiliations

  • Paul A. Samuelson
    • 1
  1. 1.Massachusetts Institute of TechnologyUSA

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