This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in ... (Read 68 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
on: Jun 30, 2018
Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies? If so, explain how this could happen. If not, why not?
 
  What will be an ideal response?

Question 2

Which of the following is NOT a proposition of the Heckscher-Ohlin model?
 
  A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource.
  B) The effect of international trade is to tend to equalize factor prices between the trading nations.
  C) If Mexico is an unskilled labor abundant country, then Mexico has a comparative advantage in the production of goods that use unskilled labor more intensively.
  D) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively.
  E) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Animal_Goddess

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

Yes. If the scale economies were external to the firm, then there is no reason why the firms may not be in perfect competition.

Answer to Question 2

E


mwit1967

  • Hero Member
  • *****
  • Posts: 501
Reply #2 on: Jun 30, 2018
Thank you


Animal_Goddess

  • Sr. Member
  • ****
  • Posts: 339
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Plant adaptations for salty conditions. Plant adaptations for salty conditions.
The same star field photographed with (a) a ground-based telescope, which is subject to poor seeing The same star field photographed with (a) a ground-based telescope, which is subject to poor seeing
Vapour-liquid equilibrium acetone + water Vapour-liquid equilibrium acetone + water
Conditions Necessary for Hurricane Formation Conditions Necessary for Hurricane Formation
The pH scale is logarithmic. A low pH indicates acidic conditions, whereas a high pH indicates ... The pH scale is logarithmic. A low pH indicates acidic conditions, whereas a high pH indicates ...
What would be the appropriate equilibrium temperature of a system obtained by adding 25.0 g of ... What would be the appropriate equilibrium temperature of a system obtained by adding 25.0 g of ...
Video: Phases of an Action Potential - Resting Potential, Threshold, Rising, Falling, & Recovery Phases

For a complete list of videos, visit our video library