63 839
Assignments Done
99,2%
Successfully Done
In August 2018

Answer to Question #47641 in Other Economics for Brenan

Question #47641
Draw a two-country, two product trade model in which production in both industries is subject to increasing returns to scale. That is, draw diagrams for two countries in which the possibilities-possibilities frontier reflects increasing returns to scale. Then make additional assumptions (clearly stated) and show how trade between the two countries affects well-being in both countries. Does trade under increasing returns to scale still make both countries better off, as the constant-returns-to-scale H-O model shows? Answer this question using both your diagram and an accompanying verbal explanation.
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions