Question #2,#3, we learned equations +1/NB, /S+C, /Q+c, N=(S/FB), Q=SFB, +F/SB 1.

Published by admin at November 16, 2023

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Consider two firms, Firm C and Firm D. Firm C charges a higher markup on marginal cost than Firm D under autarky. Which firm is more likely to select into export markets under costly trade, assuming all firms face the same constant trade cost? How does this relate to the price offered under autarky?

Question #2,#3, we learned equations +1/NB, /S+C, /Q+c, N=(S/FB), Q=SFB, +F/SB 1.

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