Q: In our discussion of labor market pooling, we stressed the advantages
In our discussion of labor market pooling, we stressed the advantages of having two firms in the same location: If one firm is expanding while the other is contracting, it’s to the advantage of both w...
See AnswerQ: As we saw in the text, Bangladesh has seen rapidly growing
As we saw in the text, Bangladesh has seen rapidly growing apparel exports as Chinese wages rise. One problem, however, is that Bangladeshi producers are mainly in or near the capital city of Dhaka, w...
See AnswerQ: In perfect competition, firms set price equal to marginal cost.
In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there are internal economies of scale?
See AnswerQ: Consider the example of industries in problem 9. What would those
Consider the example of industries in problem 9. What would those choices imply for the extent of intra-firm trade across industries? That is, in what industries would a greater proportion of trade oc...
See AnswerQ: A century ago, most British imports came from relatively distant locations
A century ago, most British imports came from relatively distant locations: North America, Latin America, and Asia. Today, most British imports come from other European countries. How does this fit in...
See AnswerQ: Suppose the two countries we considered in the numerical example on pages
Suppose the two countries we considered in the numerical example on pages 180–184 were to integrate their automobile market with a third country, which has an annual market for 3.75 million automobile...
See AnswerQ: Suppose that fixed costs for a firm in the automobile industry (
Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished auto...
See AnswerQ: Go back to the model with firm performance differences in a single
Go back to the model with firm performance differences in a single integrated market (pp. 188–190). Now assume a new technology becomes available. Any firm can adopt the new technology, but its use re...
See AnswerQ: In the chapter, we described a situation where dumping occurs between
In the chapter, we described a situation where dumping occurs between two symmetric countries. Briefly describe how things would change if the two countries had different sizes. a. How would the numbe...
See AnswerQ: Which of the following are direct foreign investments? a.
Which of the following are direct foreign investments? a. A Saudi businessman buys $10 million of IBM stock. b. The same businessman buys a New York apartment building. c. A French company merges with...
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