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
What is the significance of the observations made by OECD in this case study regarding “The OECD economies are more strongly dependent on the production, distribution and use of kn

Q. Explain how a rise in real income affects aggregate demand. Answer: An increase in domestic real income Y leads to a rise in disposable income Yd. This increases

Q. International trade leads to complete equalization of factor prices. Discuss. Answer : This statement is usually "true...but". Under a limited and strict set of assumpti

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

Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies? Answer: The limitation is little productivity increases most of

Discuss the differences between Absolute PPP and Relative PPP . Answer:  Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the

what are the limitations of the net barter terms of trade?

discuss the superiority of haberler''s theory of opportuinity cost over mill''s theory reciprocal demand?

Habrrler''s oppirtunity cost theory

Q. Evaluate the economic policies of Juan Peron, the husband of the famous Evita? Answer: Once Peron got the power in 1946 in Argentina the economy that at that time