Price-Taking Monopolies in Small Open Economies
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
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- 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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