Question:What are the explanations and advantages of free trade that the new theories of international tradegive?The international monopoly of the drone market is held by an American firm. Its averageproduction cost is given by the following function: CME = (5000-3Q) / 10China is considering setting up a firm with the average cost function:CMC = (3500 - 3Q) / 10The international request is written: DM = 1000 - p and the only Chinese request is written: DC =500– 0.5 pA. Characterize the equilibrium in a monopoly situation when the American firm is alone in theworld market.B. Describe the equilibrium in the event that China sets up a drone production industry (assumethat Chinese production remains modest - close to 0 - in the event of entry).C. What policy would improve the balance for China and for the world as a whole, if the UnitedStates were excluded? Characterize this balance. Explain and comment.D. Represent all the equilibrium situations on a single graph.

We will answer only the first question as the exact question number is not mentioned.

Answered: What are the explanations and…

Business

Economics

What are the explanations and advantages of free trade that the new theories of intermational trade give?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Compare and contrast absolute advantage advantage trade and comparative theories.
What are the advantages and disadvantages of strategic trade policy?
Explain natural resources and specialization as courses of internal trade
As, this website for free source of tools I do not want also same answers than I can easily copy the answer from here do not need to post my questions asking again please I do not want same answers hope you understand whoever already take this answers we all same professor I think hope you understand I do not same writing even I always change the my writing before summit International Trade (Chapter 20) What is the law of comparative advantage, and why is it important in international trade? Note: please do not give a copy & paste answer from Chegg. or course hero answers already found the website I want new way or writing not highly requesting can u use word file bc a lot of grammar errors in writing or use Grammarly 1. What is the law of comparative advantage, and why is it important in international trade?Expert Answer thumb_down Step 1 Comparative advantage refers to the situation where the ability of one country to produce goods and services less opportunity…
Consider the following model of trade between Home and Foreign. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade. There are two goods: Corn and Radio. Consumers always spend one-third of their income on Corn and the remainder on Radios. The only factor of production is labour. Each home country worker can produce 2 units of Corn or 3 units of Radios per unit of time, while each foreign worker can produce 2 units of Corn or 4 units of Radios per unit of time. There are 30 workers in Home and 60 workers in Foreign. Find the autarky relative price of Radios in both countries (i.e., the price of Radio divided by the price of Corn).
Why is the theory of absolute advantage incapable of explaining trade in the real world? Explain.
how do I draw a comparisn between Mercantilism as an economic system with Adam Smith’s invisible hand principles as regards international trade?
What economic impact have pandemics such as COVID-19, had on global trade?
Given the information as follows: Consider the following model of trade between Vietnam and France. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade. There are two goods: Rice and Beef. Consumers always spend 1/4 of their income on rice and the remainder on beef. The only factor of production is labor. Each Vietnamese worker can produce 2 unit of Rice or 1 unit of beef per unit of time, while each French worker can produce 1 units of rice or 3 units of beef per unit of time. There are 100 million workers in Vietnam and 70 million in France. a. Determine the product brings higher wealth to each country. b. Determine the pattern of trade for both countries using Ricardian model. Draw the world relative supply curve. c. What is the benefit of each country when joining international trade following Ricardian model? Draw the graph to clarify your idea.
The main advantage of trade between two countries is that A) trade makes both countries more self-sufficient. B) employment in both countries will increase. C) both countries can produce beyond their previous resource and productivity constraints. D) both countries can consume beyond their previous resource and productivity constraints.
Define the term common trade alliance? When does it occur?
in addition to being the pioneers of economic growth, Adam Smith and David Ricardo also established the theory of international trade. Give a critical explanation for the claim that these two economists founded the theory of international trade.