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3 International
Economics
Tenth Edition
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
In this chapter:
Production Frontier with Increasing Costs
Community Indifference Curves
Equilibrium in Isolation
Basis for and Gains from Trade with
Increasing Costs
Trade Based on Differences in Taste
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
The Production Frontier with Increasing Costs
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-1 Production Frontiers of Nation 1 and Nation 2 with
Increasing Costs.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
The Production Frontier with Increasing Costs
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Community Indifference Curves
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-2 Community Indifference Curves for Nation 1 and
Nation 2.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Community Indifference Curves
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Equilibrium in Isolation
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-3 Equilibrium in Isolation.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Equilibrium in Isolation
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Basis for and Gains from Trade with
Increasing Costs
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Basis for and Gains from Trade with
Increasing Costs
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Basis for and Gains from Trade with
Increasing Costs
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-5 The Gains from Exchange and from Specialization.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Trade Based on Differences in Taste
Salvatore: International Economics, 10th Edition © 2009 John Wiley & Sons, Inc.
FIGURE 3-6 Trade Based on Differences in Tastes.
Salvatore: International Economics, 10th Edition © 2009 John Wiley & Sons, Inc.
Appendix to Chapter 3
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-7 Isoquants, Isocosts, and Equilibrium.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-8 Production with Two Nations, Two Commodities, and
Two Factors.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-9 Derivation of the Edgeworth Box Diagram and
Production Frontier for Nation 1.
Salvatore: International Economics, 8th Edition © 2010 John Wiley & Sons, Inc.
FIGURE 3-10 Derivation of the Edgeworth Box Diagram and
Production Frontier for Nation 2.
Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.