Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. suppose there exists external economies of scale i

Suppose there exists external economies of scale in an industry located in country X. If country...

90.2K

Verified Solution

Question

Economics

Suppose there exists external economies of scale in an industrylocated in country X. If country X moves from free trade toautarky, it necessarily loses welfare. Explain in detail, using anyrelevant diagrams, whether the above statement is true, false oruncertain.

Answer & Explanation Solved by verified expert
4.3 Ratings (688 Votes)
The statement is trueWe will explain it with the help of the following diagramInitially there is free trade The Supply in free trade is shownby Supply open The demand is the domestic demand Theequilibrium point is E1 the price is P1 and quantity is Q1    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Calculus
1.2K views

The graph of y Tanx is shown Write the coordinates of point A as an...

Physics
1.2K views

Please answer for college physics discussion post. Please only type out the response as when writing...

Accounting
1.2K views

Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The...

Physics
1.2K views

A conductor has three segments two straights of length L and a semi circular with...

Geometry
1.2K views

3 1 point A sector of a circle has a central angle measure of 310...

Basic Math
1.2K views

Let ? = arcsin (3^-2)/2, thena)?=?/3 and sin?=(3^-2)/2b)?=-5?/3 and sin?=(3^-2)/2c)?=2?/3 and sin?=(3^-2)/2d0?=-4?/3 and sin?=(3^-2)/2

Algebra
1.2K views

Between Radians and Degrees Converting degrees to radians is just as easy Here s how...

Accounting
1.2K views

Question 1 Case Study Alena and Wilson Hudson inherited 200 acres of property near a...

Accounting
1.2K views

Wahr Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming...

Accounting
1.2K views

how would you help revive this business, or simply kill the business ?? prepare a...

Accounting
1.2K views

In the graphical analysis of a linear programming model, what occurs when the slope of...

Accounting
1.2K views

The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. ...