Reasons for the existence of external economies of scale, Microeconomics

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Question :

(a) Using a simple example, diffrence between inter - industry trade and intra - industry trade?

(b) Illustrate the reasons for the existence of external economies of scale.

(c) Given that countries trade under the Heckscher - Ohlin model assumptions, construct the production possibility frontier.

(d) Analyse the welfare effect a tariff on a small importing country.


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