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International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 1 Figure 4.1 Paul Samuelson (1915–)

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Presentation on theme: "International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 1 Figure 4.1 Paul Samuelson (1915–)"— Presentation transcript:

1 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 1 Figure 4.1 Paul Samuelson (1915–)

2 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 2 Figure 4.2 An isoquant

3 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 3 Figure 4.3 Isoquant M =1 and the capital intensity parameter  m

4 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 4 Figure 4.4 Capital stock per worker×1000 $; 1990 in 1985 $

5 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 5 Figure 4.5 Unit cost minimization

6 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 6 Figure 4.6 Demand for labour as a function of the wage rate,  m = 0.5

7 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 7 Figure 4.7 Impact of lower wage on cost minimizing inputs

8 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 8 Figure 4.8 Constant returns to scale and isoquants,  m = 0.5

9 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 9 Figure 4.9 Constant returns to scale and cost minimization, α m = 0.5, w = r =1

10 International Economics: Theory, Application, and Policy, Ch. 4;  Charles van Marrewijk, 2006 10 Figure 4.10 Primary products exports, share 1998


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