Multiple Choice
In the Krugman model of trade where there are economies of scale and monopolistic competition, which one of the following indicates the situation for the typical firm in the long run (where P = price of output, Q = quantity of output, W = the wage rate, and a and b are constants that are > 0) ?
A) (a + bQ) ∙W = P
B) P∙(a +b) = W
C) (a + bQ) ∙W = P∙Q
D) (a + bQ) ·W < P·Q
Correct Answer:
Verified
Correct Answer:
Verified
Q10: What features of the product cycle theory
Q11: In the Krugman model with economies of
Q12: Present in detail the following two theories/models
Q13: In the "imitation lag hypothesis," the length
Q14: In the Krugman model, when a country
Q16: Empirical tests pertaining to the determinants of
Q17: Which one of the following statements pertaining
Q18: Suppose that two countries each have the
Q19: Which of the following findings would NOT
Q20: Suppose someone stated that the Heckscher-Ohlin model