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Title: |
Production with Two Factors and Many Goods: Large Firms in a Small Open
Economy |
| Author: |
Thompson, Henry |
| Author
Affiliation: |
Auburn U |
| Source: |
International Economic Journal, Summer 1998, v. 12, no. 2, pp. 107-116 |
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Publication Date: |
Summer 1998 |
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Abstract: |
A tractable general equilibrium model of a
small open economy producing many goods with two primary inputs is
developed. Firms are large in that their output decisions affect their
costs. One sector produces many different goods under variable costs,
which arise through a link between output and the cost of the firm.
Comparative static results depend on factor intensity and the degree of
increasing costs. Some ambiguities arise in the comparative static
adjustments associated with the sector producing the constant cost
homogeneous good. |
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