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Ans) monopolistic competition model
Monopolistic competition model explains intra industry trade and the model includes economies of scale and differentiated products
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_is a model of trade that includes economies of scale and differentiated products even when there...
1. In the case of trade based on external economies of scale, the pattern of trade...
1. In the case of trade based on external economies of scale, the pattern of trade is determined by relative factor abundance. determined by comparative advantage. determined by relative technological differences. determined by history and accident. 2. Dynamic returns to scale refer to average cost falls with current rate of production marginal cost falls with current production average cost falls with cumulative production over time. marginal cost fall with cumulative production over time. 3. In which of the following cases...
1) What is internal economies of scale? And why would it be a source of trade?...
1) What is internal economies of scale? And why would it be a source of trade? What are the gains of trade in the presence of internal economies of scale? 2) Using graph please explain how performance differences in an industry with internal economies of scale creates winners and losers after trade? Explain step by step.
Production of a good is characterized by external scale economies. Currently there is no trade in...
Production of a good is characterized by external scale economies. Currently there is no trade in the product, and the product is produced in two countries. If trade is opened in this product, all production will be driven to occur in only one country. a. With free trade, why would production occur only in one country? b. Does opening trade bring gains to both countries? Explain.
28 When there are external economies of scale, an increase in the size of the market...
28 When there are external economies of scale, an increase in the size of the market will: A) not affect the number of firms, but will lower the price per unit. B) decrease the number of firms and lower the price per unit. C) decrease the number of firms and raise the price per unit. D) increase the number of firms and raise the price per unit. E) increase the number of firms and lower the price per unit. -...
4. Under Internal Scale Economies and Monopolistic Competition, explain how this type of International Trade is...
4. Under Internal Scale Economies and Monopolistic Competition, explain how this type of International Trade is consistent with the Gravity Model of Trade. (2 points) a.
Apply the following models to Germany's actual trade patterns: Gravity Model Hecksher-Ohlin Model Internal Economies of...
Apply the following models to Germany's actual trade patterns: Gravity Model Hecksher-Ohlin Model Internal Economies of Scale Please explain as well as use illustrations to visualize
New trade theory argues that, through its impact on economies of scale, trade can Multiple Choice...
New trade theory argues that, through its impact on economies of scale, trade can Multiple Choice increase the variety of goods available to consumers. increase the average costs of goods. enable the global market to support a wide range of enterprises. prevent diminishing of returns and promote constant returns to specialization. negatively affect the first-mover advantage for all products
5 points QUESTION 11 Trade has no effect on the distribution of incomes within countries in trade relations. True False 5 points QUESTION 12 Internal economies of scale form the basis for internationa...
5 points QUESTION 11 Trade has no effect on the distribution of incomes within countries in trade relations. True False 5 points QUESTION 12 Internal economies of scale form the basis for international trade. True False 5 points QUESTION 13 Economies of scale give rise to international​ trade True False 5 points QUESTION 14 Preferential trade agreements are welfare improving if they lead to trade diversion. True False 5 points QUESTION 15 GATT is a more formal organization with larger...
International trade ar 36 Internal economies of scale will by average cost when output is Pr...
International trade
ar 36 Internal economies of scale will by average cost when output is Pr A) increase; increas ed; a firm B) reduce; increased; the industry C) increase; increased; the industry D) reduce; reduce; the industry E) reduce; increased; a firm and 37 The learning curve describes the A) direct; unit cost; cumulative output B) inverse; educ ation; annual income C) inverse; unit cost; cumulative output D) direct; education; annual income E) direct; education; labor productivity , relationship between...
31. If two countries begin trade and both produce a product subject to internal economies of...
31. If two countries begin trade and both produce a product subject to internal economies of scale, then the country with the rate of production will production until it controls of the market. A) higher; increase; 50%. B) higher, increase; 100%. C) higher; decrease; 0% D) lower; increase; 50%. E) lower, increase; 100%. 32.__. The primary determinant of patterns of interregional trade is: A) accidents of history. B) centralized optimization. C) resource allocations. D) weather. E) factor abundance. 33. The...
28 When there are external economies of scale, an increase in the size of the market will: A) not affect the number of firms, but will lower the price per unit. B) decrease the number of firms and lower the price per unit. C) decrease the number of firms and raise the price per unit. D) increase the number of firms and raise the price per unit. E) increase the number of firms and lower the price per unit. -...
4. Under Internal Scale Economies and Monopolistic Competition, explain how this type of International Trade is consistent with the Gravity Model of Trade. (2 points) a.
International trade
ar 36 Internal economies of scale will by average cost when output is Pr A) increase; increas ed; a firm B) reduce; increased; the industry C) increase; increased; the industry D) reduce; reduce; the industry E) reduce; increased; a firm and 37 The learning curve describes the A) direct; unit cost; cumulative output B) inverse; educ ation; annual income C) inverse; unit cost; cumulative output D) direct; education; annual income E) direct; education; labor productivity , relationship between...
31. If two countries begin trade and both produce a product subject to internal economies of scale, then the country with the rate of production will production until it controls of the market. A) higher; increase; 50%. B) higher, increase; 100%. C) higher; decrease; 0% D) lower; increase; 50%. E) lower, increase; 100%. 32.__. The primary determinant of patterns of interregional trade is: A) accidents of history. B) centralized optimization. C) resource allocations. D) weather. E) factor abundance. 33. The...
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