Although the pure theory of international trade has much in common with the micro-economic theory, for obvious reasons trade theory should be and has been treated as a separate discipline. Nevertheless, a clear comprehension of the micro-economic concepts is essential for the exploration of various issues that arise in the field of inter­national trade. Accordingly, the present chapter is devoted to a brief examination of mathematical concepts, definitions and geometric tools which have been utilised quite extensively in the literature and which as an aid to exposition will be used on numerous occasions in subsequent chapters.


Production Function International Trade Unit Cost Marginal Productivity Relative Price 


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  1. [1]
    Hicks, J. R., The Theory of Wages (London: Macmillan, 1932).Google Scholar
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    Savosnick, K. M., ‘The Box Diagram and the Production-Possibility Curve’ Ekonomisk Tidskrift, lx (Sep 1958) 183–97.CrossRefGoogle Scholar

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© Raveendra N. Batra 1973

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  • Raveendra N. Batra

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