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International Economics Chapter 6 Quiz 1. The following graph shows a monopolistically competitive market in its long-run equilibrium without trade. a. Illustrate the short-run effects of opening up...

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International Economics Chapter 6 Quiz 1. The following graph shows a monopolistically competitive market in its long-run equilibrium without trade. a. Illustrate the short-run effects of opening up to trade (5 points) b. Illustrate the long-run effects of opening up to trade (5 points)

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International Economics Chapter 6 Quiz 1. The following graph shows a monopolistically competitive market in its long-run equilibrium without trade. a. Illustrate the short-run effects of opening up to trade (5 points) b. Illustrate the long-run effects of opening up to trade (5 points)

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Answered Same Day Dec 25, 2021

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David answered on Dec 25 2021
117 Votes
International Economics Chapter 6 Quiz
1. The following graph shows a monopolistically competitive market in its long-run
equili
ium without trade.
a. Illustrate the short-run effects of opening up to trade (5 points)
When the trade opens up for the monopolistically competitive firm, the demand will increase due
to larger size of the market. The demand D/NA shifts to the right due to increase in demand,
dragging along the curve d1 and mr1. Short run equili
ium occurs at the point D where each
firms...
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