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 47 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?

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?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Wilson and Simberloff's experiments on the equilibrium model of biogeography. Wilson and Simberloff's experiments on the equilibrium model of biogeography.
Examples of Emergency Conditions Examples of Emergency Conditions
Medications and Medical Conditions Associated with Anxiety Medications and Medical Conditions Associated with Anxiety
Air flows through the PCV valve during idle, cruising, and light-load conditions. Air flows through the PCV valve during idle, cruising, and light-load conditions.
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Write the acidic equilibrium equation for HC₆H₅O. Write the acidic equilibrium equation for HC₆H₅O.
Video: What are Strong & Weak Acids and How they're different?

For a complete list of videos, visit our video library