1. What are the differences between internal and external economies of scale? 2.How might trade hurt...

1. What are the differences between internal and external economies of scale? 2.How might trade hurt a country if it imports goods produced under external economies of scale?

Expert Solution

Rahul Sunny answered 2 years ago

3. Briefly explain the difference between external and internal economies of scale. Why is it that...

3. Briefly explain the difference between external and internal economies of scale. Why is it that if an industry is operating under conditions of internal scale economies then we cannot have perfect competition? 4. State one factor which may lead to external economies of scale.

A. Explain what external and internal economies of scale are and why the supply curve in...

A. Explain what external and internal economies of scale are and why the supply curve in their case is shaped as “forward-falling”. B. What may cause one country to have an initial advantage from having a lower price? Discuss and give an example. C. Define what increasing returns to scale represents in the context of a production function. D. Can trade hurt a country when there are external economies of scale? Give an example with a 2-country 2-good model and...

This question deals with external economies of scale. a) How does external economies of scale potentially...

This question deals with external economies of scale. a) How does external economies of scale potentially justify infant industry protection? Use a diagram to help you answer this. b) Suppose that Germany and India can both produce shirts, but India has a lower average cost curve. Germany has the head start in world production of shirts, beginning as the world's only supplier of shirts. Even though Germany has the head start advantage, India can still enter production of shirts. Draw...

How do economies of scale impact trade? What are the different types of economies of scale?

Trade in the presence of external scale economies leads to prices that are lower than the...

Trade in the presence of external scale economies leads to prices that are lower than the prices in only one of the trading partners before trade. True or False? Justify your answer with an appropriate diagram

Explain the differences between Economies of Scale and Diseconomies of Scale and explain what factors influence...

Explain the differences between Economies of Scale and Diseconomies of Scale and explain what factors influence over them. In order to do so, you will have to use the concepts of Short and Long Run average total costs. Remember that in the Short Run Average Total Cost curve, you can find at least one of your assets as fixed and in the Long Run Average Total Cost curve, all the assets are considered variable, meaning that you are assuming the...

What are the differences between external respiration and internal respiration?

1. What are economies of scale? How do economies and diseconomies of scale influence the shape...

1. What are economies of scale? How do economies and diseconomies of scale influence the shape of the long run cost curves? How do economies of scale relate to indivisible setup costs? What are diseconomies of scale and how do they arise?

Do you think that Disney has grown from internal or external economies of scale? Assuming that...

Do you think that Disney has grown from internal or external economies of scale? Assuming that Disney is similar to other multinationals what do you conclude when you read about the slow economic growth rate in the U.S. compared with the growth rate of the multinationals of the past few decades? What about wage growth rate?

Discuss the differences between internal and external users of information ..

Discuss the differences between internal and external users of information and their needs and demands on an information system. Historically, which type of user has the firm catered to most?

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