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Unformatted text preview: Internal economies of scale AC defines the comparative advantage of each firm, if this is low, the firm can charge a lower price. SFT = Sh + Sf Monpolistic competition-&gt; cars In the end, we will charge the same price. In international trade, n goes up and p goes down. n of home is 6, must chose among 6 car companies but with international trade, varieties are going up as price goes down, thus utility level increases. Firms are trying to locate at the same location to derive advantage from the industry size. Dumping- imperfect competition- price discrimination- no one price for all. Domestic and world price are different. Pw &lt; pd (price world &lt; autarky price) imperfect competition- firms have monopoly power to change price markets are segmented- so that goods are not easily bought in one market and resold in another. Anti-dumping duty on 265 items from 40 different countries anti-dumping tax is basically if you can prove that producer is charging different prices for...
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