What are the key differences between the increasing returns to scale and monopolistic competition model and the Hecksher-Ohlin (H-O) model of trade?
What are the key differences between the increasing returns to scale and monopolistic competition model and the Hecksher-Ohlin (H-O) model of trade?
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:What are the key differences between the
increasing returns to scale and monopolistic
competition model and the Hecksher-Ohlin
(H-O) model of trade?
How does an industry adjust from long-run
equilibrium without trade to long-run
equilibrium with trade under increasing
returns to scale and monopolistic competition
model of trade?
What happens to the firm's demand curve,
number of firms, the size of firms, price of
products, and profits/losses of firms?
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