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 diseconomies of scale will , and in the presence of external diseconomies of scale, will .

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Question 21

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

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Question 22

The existence of internal economies of scale

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Question 23

External economies of scale will average cost when output is by .

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Question 24

A learning curve relates to and is a case of returns.

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Question 25

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 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

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 28

Explain why positive economies of scale in one (of two) sectors may establish a comparative advantage for the large (as compared to the small) country in the production of the commodity which exhibits positive scale economies.

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Question 29

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?

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Question 30

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

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Question 31

The share of goods in employment is across the country. The share of goods in employment is across the country.

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Question 32

External economies of scale often arise because similar firms

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Question 33

If a firm's output doubles when all inputs are doubled, production is said to occur under conditions of

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Question 34

If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

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Question 35

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

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Question 36

If a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of

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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 diseconomies of scale will , and in the presence of external diseconomies of scale, will .

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

The existence of internal economies of scale

External economies of scale will average cost when output is by .

A learning curve relates to and is a case of returns.

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 .

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 .

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.

Explain why positive economies of scale in one (of two) sectors may establish a comparative advantage for the large (as compared to the small) country in the production of the commodity which exhibits positive scale economies.

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?

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

The share of goods in employment is across the country. The share of goods in employment is across the country.

External economies of scale often arise because similar firms

If a firm's output doubles when all inputs are doubled, production is said to occur under conditions of

If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

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

If a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of

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 diseconomies of scale will ________, and in the presence of external diseconomies of scale, will ________.

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

The existence of internal economies of scale

External economies of scale will ________ average cost when output is ________ by ________.

A learning curve relates ________ to ________ and is a case of ________ returns.

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 ________.

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 ________.

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.

Explain why positive economies of scale in one (of two) sectors may establish a comparative advantage for the large (as compared to the small) country in the production of the commodity which exhibits positive scale economies.

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?

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

The share of ________ goods in employment is ________ across the country. The share of ________ goods in employment is ________ across the country.

External economies of scale often arise because similar firms

If a firm's output doubles when all inputs are doubled, production is said to occur under conditions of

If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

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

If a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of

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 diseconomies of scale will , and in the presence of external diseconomies of scale, will .

External economies of scale will average cost when output is by .

A learning curve relates to and is a case of returns.

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 .

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 .

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

The share of goods in employment is across the country. The share of goods in employment is across the country.