Monopolistic Competition, IRS, International Economics

Suppose that industry 1 is monopolistically competitive, with a CES sub-utility function:
U(c1,c2 ) = c1? + c?2 , 0 < ? = (s -1) / s < 1.

We let the marginal costs be denoted by c1(w,r), and the fixed costs in
the industry by ac1(w,r). That is, the fixed costs use labor and capital in the same proportions as
the marginal costs. Industry 2 is a competitive industry, and each industry uses labor and capital.

Write down the relationship between the prices of goods and factor prices. Does the Stolper-Samuelson Theorem still apply?
Posted Date: 9/22/2012 6:22:05 AM | Location : United States

Related Discussions:- Monopolistic Competition, IRS, Assignment Help, Ask Question on Monopolistic Competition, IRS, Get Answer, Expert's Help, Monopolistic Competition, IRS Discussions

Write discussion on Monopolistic Competition, IRS
Your posts are moderated
Related Questions
Can you please sent me Students Assignment on Above Title

Q. Using the DD - AA framework, show the phenomenon of overshooting.  Use a figure to explain when it is taking place. Answer: The figure below illustrates the phenomenon of ov

Q. Other things being equal, a rise in a country's terms of trade enhances its welfare. What could happen if we relax the ceteris paribus assumption, and allow for the law of dema

To answer the following question, please refer to the figure below. Concentrating only at the lower right quadrant, discuss the effects of a change in U.S. expected inflation.

tion..What is the range of gross barter terms of trade ?

Q. "The line distinguishing between external and internal goals can be fuzzy."  Discuss. Answer: True For instance employment target for export industries when export growth m

Q. Explain why the oil price shocks after 1973 made countries unwilling to revive the Bretton Woods system of fixed exchange rates. Answer: Using the GG - LL framework

Q. Explain why after, say Norway unilaterally pegs the krone to the euro, domestic money market disturbances will no longer affect domestic output despite the continuation of float

Present and explain the Fundamental Equation of the Monetary Approach. Answer:  Suppose E $ /E = P US /P E and that domestic price levels depend on domestic money demands and