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Such companies are usually as professional as possible. They have a huge deposit of capital for their business, they understand the best strategies and apply it, they have the best employees, and they know who to target and when to do so. Seeing as they have every capacity to do really well with very little or no competitions, they tend to dominate the market and consumers see them as better than a few others who are in the same line of business. As imbalanced as this may be, it is the reality running a business anywhere in the world today. The big brands fight so hard to remain at the top and carter to most of the consumers, and the smaller brands just manage to get along. This is a market situation where one or more organization dominates the output of the industry. A major difference between oligopoly and monopolistic competition is that oligopolies do not play small. They go all the way to break the required barriers in order to access the market, something the smaller companies may not be able to do. What Is a Monopolistic Competition

Briefly explain what each of the following terms means as described in this chapter.

Expert Answer

Trade War Autarky Leontief Paradox Monopolistic Competition Trade Balance In this problem you will use the World Development Indicators Https://amazonia.fiocruz.br/scdp/blog/story-in-italian/the-case-of-sergeant-george-welsh.php database from the World Bank to compute the comparative advantage of two countries in the major sectors of gross domestic product GDP : agriculture, industry which includes manufacturing, mining, construction, electricity, and gasMohopolistic services. S and one other country either from Africa or Asia excluding Japan or South Korea that you would like to Whst, and for a recent year write down their total labor force in millions and the percentage of the labor force What Is a Monopolistic Competition is female.

Then calculate the number of the labor force in millions who are male and the number who are female. Https://amazonia.fiocruz.br/scdp/blog/gregorys-punctuation-checker-tool/critical-analysis-of-mrs-lazarus.php the same two countries that you chose in part a and for roughly the same year, write down the percent of male employment and the percent of female employment in each of the three sectors of GDP: agriculture, industry, and services.

If the data are missing in this table for the countries that you chose in part ause different countries. Use these percentages along with your answer to part a to calculate the number of male workers and the number of female workers in each sector.

Product Differentiation

Add together the number of male and female workers to get the total labor force in each sector. Multiply GDP by the percentages to obtain the dollar amount of GDP coming from each of these sectors, which continue reading interpreted as the value-added in each sector, that is, the dollar amount that is sold in each sector minus the cost of materials not including the cost of labor or capital used in production.

Using your results from parts b and cdivide the GDP from each sector by the labor force in each sector to What Is a Monopolistic Competition the value-added per worker in each sector. Then compute the absolute advantage of one country relative to the other in each sector, as shown on the right-hand side of Table Competitiion Interpret your results.

Monopolistic Competition Definition

Based on your results, what should be the trade pattern of these two countries if they were trading only with each other? Assume that two countries, Home and Foreign, produce two goods: TVs and cars.

What is the no- trade relative price of TVs in Home? What is the marginal product of labor for TVs in Foreign? What is the no-trade relative price of TVs in Foreign? Which good will each country export?

Defintition of Monopolistic Competition

Briefly explain why. In the trade equilibrium, what is the real wage in Home in terms of cars and in terms of TVs? How do these values compare with the real wage in terms of either good in the no-trade equilibrium? In the trade equilibrium, what is the real wage in Foreign in terms of TVs and in terms of cars? Explain why. In chapter 3, we learned that workers displaced by import competition are eligible for compensation through the Trade Adjustment Assistance program.]