In the Melitz model, when a firm begins to export its product in addition to supplying the product to the domestic market, the firm encounters additional fixed costs; with successful exporting taking place by such firms, the level of average aggregate productivity in this Industry Multiple Choice positive, rises no, remains constant no; rises positive, remains constant

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 4E
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In the Melitz model, when a firm begins to export its product in addition to supplying the product to the domestic market, the firm encounters
additional fixed costs; with successful exporting taking place by such firms, the level of average aggregate productivity in this
Industry
Multiple Cholce
positive; rises
no; remains constant
no; rises
positive; remains constant
Transcribed Image Text:In the Melitz model, when a firm begins to export its product in addition to supplying the product to the domestic market, the firm encounters additional fixed costs; with successful exporting taking place by such firms, the level of average aggregate productivity in this Industry Multiple Cholce positive; rises no; remains constant no; rises positive; remains constant
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