Answered step by step
Verified Expert Solution
Question
1 Approved Answer
18. Consider the difference between the implications of the standard trade model and the outcome of international trade in the presence of external economies of
18. Consider the difference between the implications of the standard trade model and the outcome of international trade in the presence of external economies of scale. Which of the following outcomes below is valid the standard trade model for but not valid for international trade in the presence of external economies of scale? (i) international trade has a predictable pattern (il) world production is concentrated in a single location (iii) relative prices converge in different countries (tv) the effect of trade is to reduce prices everywhere a b. (1) and (ii) C. (i) and (hii) (i), (ii), and (iv)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started