Question
Suppose the production of clothing displays external economies of scale. Suppose further that clothing production is a labor-intensive process, and Country A is the most
Suppose the production of clothing displays external economies of scale. Suppose further that clothing production is a labor-intensive process, and Country A is the most labor abundant country in the world. If Country A does not export any clothing, is the model of trade driven by external economies of scale incorrect, or flawed? Why or why not?
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
