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Accepted

### Factor changes in Melitz (2003) model

Let us assume that the labor supply increases. Below I list some of the consequences that occur in the model: Wage adjustment: An increase in labor supply typically leads to a decrease in wages due ...
Accepted

### Does the Rybczynski theorem also hold in modern trade theory models?

The Rybczynski theorem is not directly applicable to the Melitz (2003) model, because the model the Rybczynski theorem is originating from, the Heckscher-Ohlin model, is built on different assumptions ...
Consider this allocation: Apple: $55$ hours on Phones, $15$ hours on Tablets. Samsung: All $70$ hours on Tablets. I leave it as an excercise for you to check it works. Initially what I thought was ...