New PDF release: Acoustics

By Beranek L.L.

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Thus, the above policy discussion could not be applied since it presumed (realistically) that firms produced a range of different varieties. So rather than considering firms, we were forced to examine instead the number of varieties produced in a country. Suppose we began with two identical countries, each producing 100 varieties in autarchy. Then when trade was opened, what would happen to this number? If substantially fewer varieties were produced in each country, we would expect the structural adjustment to be more severe.

It equals total labour supply minus labour demand by the finished-good industry. ) represents labour demand per unit of income in the production of finished goods. Using (8b) and the symmetry property of the equilibrium, we have: fx(w, r, Pz, Py' N) == N fd'N aApAv; w, r, pz), Py]Pxw(v; w, r, pJdv. ) = 1/N) ofax[PAv; w, r, pz), Py]Pxw(v; w, r, pz) represents labour demanded in the production of finished goods. It does so for consumers with unit income, whose finished goods are produced with a single variety of the middle product.

1. ) is defined in (11). The first -order conditions for profit maximisation are: Helpman: Trade in Differentiated Middle Products 15 and The first condition is the familiar equality of marginal revenue to marginal costs, while the second condition describes the profitmaximising variety choiee. Observe that when Pzi-l = PZi+l> condition (14) is satisfied for V i _1 = D and pz = PZi-l = PZi+l (see (12». IV EQU/LIBRIUM This section is devoted to a description of equilibrium conditions for a two-country world.

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Acoustics by Beranek L.L.


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