(Solution) 1Assume That Two Countries, A And B, Employ The Same Technology In The Production Of A Good. Further Assume That External Economies Of Scale Apply In... | Snapessays.com


(Solution) 1Assume that two countries, A and B, employ the same technology in the production of a good. Further assume that external economies of scale apply in...


1?Assume that two countries, A and B, employ the same technology in the production of a good. Further assume that external economies of scale apply in both countries. a.Discuss the reasons for the above assumptions.b.Analyze the effects of trade on long-run production levels if country A has a comparatively lower cost of production at autarky.

 


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This question was answered on: May 23, 2022

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