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

  • Paul A. Samuelson


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.


Factor Intensity International Trade Factor Price Factor Endowment Factor Share 
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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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