Question: No work is needed for this Price, cost (per button) Ci1 Quantity of buttons produced and demanded The market for buttons has externai economies of

No work is needed for this

Price, cost (per button) Ci1 Quantity of buttons produced and demanded The market for buttons has externai economies of scale. Currently China exports all buttons. Vietnam can become the exporter of buttons if: 0 If the Average Cost (AC) of buttons curve for Vietnam remains the same. If the Average Cost [AC] of buttons curve for Vietnam decreases so that the price of making one button goes down to P1 . If the Average Cost {AC} of buttons curve for Vietnam increases so that the price of making one button goes up to C1. Ifthe Average Cost (AC) of buttons curve for China decreases. Vietnam cannot become a buttons exporter because the Average Cost Curve cannot ever change. 0000

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