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Price-Taking Monopolies in Small Open Economies

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  • Henry Thompson

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Abstract

The export sector of a small open economy is assumed to be a price-taking monopoly with increasing long-run average cost and positive profit. Under such conditions, demands for productive factors are shown to slope downward in the general equilibrium of an otherwise competitive economy. Comparative static effects of changing prices and factor endowments are weaker than with a competitive export sector. The comparative static effects involving monopoly profit and outputs are examined. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Henry Thompson, 2002. "Price-Taking Monopolies in Small Open Economies," Open Economies Review, Springer, vol. 13(2), pages 205-209, April.
  • Handle: RePEc:kap:openec:v:13:y:2002:i:2:p:205-209
    DOI: 10.1023/A:1013929432480
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    File URL: http://hdl.handle.net/10.1023/A:1013929432480
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    References listed on IDEAS

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    1. R. Melvin, James & Warne, Robert D., 1973. "Monopoly and the theory of international trade," Journal of International Economics, Elsevier, vol. 3(2), pages 117-134, May.
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    Cited by:

    1. Henry Thompson, 2016. "Tariffs and Wages in Trade Theory," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 399-405, May.

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    Keywords

    monopoly; factor-proportions; trade;

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