Question: Hello, please answer question 1 ,thanks Question 1 (1 point) What would be one implication of adding trade costs t to the internal economies model

Hello, please answer question 1 ,thanks

Hello, please answer question 1 ,thanks Question 1 (1 point) What would

Question 1 (1 point) What would be one implication of adding trade costs t to the internal economies model with firms of different marginal costs? Only the lowest cost firms will be able to export O export market prices will be lower than domestic prices charged by the same firms O firms that export will not be able to operate on the domestic (home) market trade costs add to the fixed cost per firm, which further strengthen internal economies of scale forces

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!