1. Chapter 7: Imperfect competition
Charles van Marrewijk
International Trade
Chapter 7: Imperfect competition

2. 7.2 optimal output for a monopolist
Price MR
demand
pmon B
operating
profits A MC c
qmon
Quantity

3. 7.3 autarky equilibrium with a monopoly for manufactures
Food
mon
opt
ppf
Manufactures

4. 7.4 derivation of American firm’s reaction curve

5. 7.5 Cournot equilibrium

6. 7.6 pro-competitive gains from trade
Food
cou
mon
opt
ppf
Manufactures

7. 7.7 reciprocal dumping price demand monopoly pmon prec
MRrec
MRmon
monopoly
pmon
prec
reciprocal dumping Tc c B A
qmon
qAA
qrec
quantity
imports = qBA
profits in autarky
foreign profits with trade
increase consumer surplus with trade
-/-
net welfare effect
domestic profits with trade

8. 7.8 trade and welfare in the reciprocal dumping model