Production with Two Factors and Many Goods Large Firms in a Small Open Economy

Henry Thompson

International Economic Journal, 1998, vol. 12, issue 2, 107-116

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. [F1]

Date: 1998
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DOI: 10.1080/10168739800000016

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