1. McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 6: Scale Economies, Imperfect Competition, and Trade

2. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-2 Figure 6.1 Scale Economies

3. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-3 Exports Plus Imports as a Percentage of GDP Figure 6.2 Intra-Industry Trade for the United States, Selected Products, 2009

4. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-4 Figure 6.3 Average Percentage Shares of Intra-Industry Trade in the Country’s Total Trade in Nonfood Manufactured Products

5. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-5 Figure 2.2 The Market for Motorbikes: Demand and Supply Figure 6.4 The U.S. Market for Compact Cars, No Trade

6. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-6 Figure 6.5 Market for Compact Cars, No Trade and Free Trade

7. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-7 The Individual Firm in Monopolistic Competition

8. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-8 No Trade to Free Trade

9. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-9 Figure 6.6 Net Trade and Intra- Industry Trade

10. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-10 Figure 6.7 External Economies Magnify an Expansion in a Competitive Industry

11. Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-11 Figure 6.8 Summary of Gains and Losses from Opening Up Trade in Three Cases