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Mean = 86 MS mean = 82 PhD mean = 93

Mean = 86 MS mean = 82 PhD mean = 93. Part 1: going from no-trade to trade at world prices. P. S. consumers add consumption, and gain G+H+I+J. A. Ps=100. D. E. B. C. F. Pe =200. H. G. K. producers reduce output and lose G+H. I. J. Pw=100. L. N. O. M. D. Q.

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Mean = 86 MS mean = 82 PhD mean = 93

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  1. Mean = 86MS mean = 82PhD mean = 93

  2. Part 1: going from no-trade to trade at world prices P S consumers add consumption, and gainG+H+I+J A Ps=100 D E B C F Pe=200 H G K producersreduce outputand loseG+H I J Pw=100 L N O M D Q Efficiency gain is I + J, Therefore efficiency loss of autarky is -(I+J)

  3. Part 2: going from no-trade to export subsidy P S consumers face higherprices and lose-(B+C) A Ps=100 D E B C F Pe=200 H G K producersincrease outputand gainB+C+D+E I J Pw=100 L N O M D Q Export subsidy costs –(C+D+E+F) Therefore efficiency loss is –(C + F)

  4. Combining: going from world price to export subsidy P S A Ps=100 D E B C F Pe=200 H G K I J Pw=100 L N O M D Q Combined efficiency loss is –(C + F + I + J)

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