Exam 7: External Economies of Scale and the International Location of Production

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If output is increased in the long run, average production costs in the presence of internal economies of scale will , and in the presence of external economies of scale, will .

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Question 21

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be and the long-run market supply curve will be .

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Question 22

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.

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Question 23

What is meant by "a cluster of firms" and what are the three main sources of the economic advantages derived from locating in such a district?

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Question 24

Patterns of interregional trade are primarily determined by rather than because factors of production are generally .

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Question 25

Suppose that two countries, A and B, employ the same technology in the production of a good. External economies of scale apply in both countries. Analyze the effects of trade on long-run production levels if country A has a comparatively lower cost of production when trade begins.

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Question 26

The long-run market supply curve in the presence of internal economies of scale is , and in the presence of external economies of scale, it is .

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Question 27

Why is it that if an industry is operating under conditions of internal scale economies then the resultant equilibrium cannot be consistent with the pure competition model?

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Question 28

The existence of internal economies of scale

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Question 29

If a scale economy is the dominant technological factor defining or establishing comparative advantage, then the underlying facts explaining why a particular country dominates world markets in some product may be pure chance, or historical accident. Explain, and compare this with the answer you would give for the Heckscher-Ohlin model of comparative advantage.

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Question 30

The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in

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Question 31

In the presence of external economies of scale, trade

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Question 32

When there are external economies of scale, an increase in the size of the market will

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Question 33

The study of factors that influence both international and interregional trade is referred to as

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Question 34

Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?

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Question 35

Restaurant meals are an example of a good and clothing is an example of a good. The pattern of interregional trade is determined primarily by .

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Question 36

If output is increased in the long run, then in the presence of internal economies of scale the number of firms will , and in the presence of constant external returns to scale the number of firms will .

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Question 37

Showing 21 - 37 of 37

If output is increased in the long run, average production costs in the presence of internal economies of scale will , and in the presence of external economies of scale, will .

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be and the long-run market supply curve will be .

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.

What is meant by "a cluster of firms" and what are the three main sources of the economic advantages derived from locating in such a district?

Patterns of interregional trade are primarily determined by rather than because factors of production are generally .

Suppose that two countries, A and B, employ the same technology in the production of a good. External economies of scale apply in both countries. Analyze the effects of trade on long-run production levels if country A has a comparatively lower cost of production when trade begins.

The long-run market supply curve in the presence of internal economies of scale is , and in the presence of external economies of scale, it is .

Why is it that if an industry is operating under conditions of internal scale economies then the resultant equilibrium cannot be consistent with the pure competition model?

The existence of internal economies of scale

The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in

In the presence of external economies of scale, trade

When there are external economies of scale, an increase in the size of the market will

The study of factors that influence both international and interregional trade is referred to as

Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?

Restaurant meals are an example of a good and clothing is an example of a good. The pattern of interregional trade is determined primarily by .

If output is increased in the long run, then in the presence of internal economies of scale the number of firms will , and in the presence of constant external returns to scale the number of firms will .

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

Exam 7: External Economies of Scale and the International Location of Production

If output is increased in the long run, average production costs in the presence of internal economies of scale will ________, and in the presence of external economies of scale, will ________.

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be ________ and the long-run market supply curve will be ________.

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.

What is meant by "a cluster of firms" and what are the three main sources of the economic advantages derived from locating in such a district?

Patterns of interregional trade are primarily determined by ________ rather than ________ because factors of production are generally ________.

Suppose that two countries, A and B, employ the same technology in the production of a good. External economies of scale apply in both countries. Analyze the effects of trade on long-run production levels if country A has a comparatively lower cost of production when trade begins.

The long-run market supply curve in the presence of internal economies of scale is ________, and in the presence of external economies of scale, it is ________.

Why is it that if an industry is operating under conditions of internal scale economies then the resultant equilibrium cannot be consistent with the pure competition model?

The existence of internal economies of scale

The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in

In the presence of external economies of scale, trade

When there are external economies of scale, an increase in the size of the market will

The study of factors that influence both international and interregional trade is referred to as

Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?

Restaurant meals are an example of a ________ good and clothing is an example of a ________ good. The pattern of interregional trade is determined primarily by ________.

If output is increased in the long run, then in the presence of internal economies of scale the number of firms will ________, and in the presence of constant external returns to scale the number of firms will ________.

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

If output is increased in the long run, average production costs in the presence of internal economies of scale will , and in the presence of external economies of scale, will .

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be and the long-run market supply curve will be .

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.

Patterns of interregional trade are primarily determined by rather than because factors of production are generally .

The long-run market supply curve in the presence of internal economies of scale is , and in the presence of external economies of scale, it is .

Restaurant meals are an example of a good and clothing is an example of a good. The pattern of interregional trade is determined primarily by .

If output is increased in the long run, then in the presence of internal economies of scale the number of firms will , and in the presence of constant external returns to scale the number of firms will .