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1.What factors are important in determining the length of the imitation lag and the length of the demand lag? describe.

2.Ignoring the mathematics, describe the operation of the Krugman model in economic terms, and indicate the principal lessons of it.

3.Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? describe.

4.Is the distinction between "intra-industry trade" and "inter industry trade" a useful distinction? Why or why not?

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  • Category:- Microeconomics
  • Reference No.:- M941176

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