This paper extends the standard general equilibrium trade model with constant returns to scale to allow for a fixed markup over production cost thereby enabling the price of output to be a meaningful measure of competitiveness. As such, the new measure has potential application in the 鈥渋nternational competitiveness鈥� literature, which heretofore has been only weakly informed by economic theory (see, for example, ).
Key Words: 鈥�.
JEL Classification Numbers: 鈥�.