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 “international competitiveness” literature, which heretofore has been only weakly informed by economic theory (see, for example, Ball et al., Agricultural Economics, Vol. 41, No. 6, November 2010, pp. 611–627).

Key Words: ….

JEL Classification Numbers: ….