{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

14%20External%20Economies%20and%20Trade

14%20External%20Economies%20and%20Trade - External...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 1 External Economies and Trade Introduction and Assumptions The Theory of External Economies of Scale External Economies and Trade Trade and Welfare Dynamic Increasing Returns 2 Introduction When economies of scale apply at the level of the industry rather than at the level of the individual firm, they are called external economies . 3 Assumptions Assumption #1: The are many firms . 4 Assumptions Assumption #2: Each firm produces a slightly differentiated product .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon