A jeans manufacturer operates twin plants-

Assignment Help Microeconomics
Reference no: EM13964956

A jeans manufacturer operates twin plants- one in Juarez, Mexico and the other in El Paso, Texas. The Juarez plant cuts fabric for the jeans, and the El Paso plant assembles the pieces into finished jeans. In a given year, the Juarez plant ships $40 million worth of cut fabric to the El Paso plant which, in turn, adds $60 million of additional value. In the end, $100 million of final product comes out of the El Paso plant. One half of these jeans are sold in the United States, and the other half are shipped to retailers in France. 

How would this activity be reflected in U.S. GDP and its components?

Reference no: EM13964956

Questions Cloud

What is the annual cost of goods sold : If the average inventories is $2 mil, the average payables is $.7mil, the receivable Period is 30 days and the cash conversion cycle is 50 days. What is the annual cost of goods sold? With 3/10 net 70 terms = what is EAR?
Most economists regard investment as being less stable : Most economists regard investment as being less stable than consumption.  Looking at the determinants of each factor, support this contention
How are the two variables mathematically related : Using the data in the table calculate the regression equation, including the slope and intercept terms, R squared, and the SE of the regression (SE of the estimate).
Variety of unpackaged dried fruit and nut items : MixedNutsis a store that sells a variety of unpackaged dried fruit and nut items.  The current amounts of supplies of each item are listed in the following table:
A jeans manufacturer operates twin plants- : A jeans manufacturer operates twin plants- one in Juarez, Mexico and the other in El Paso, Texas. The Juarez plant cuts fabric for the jeans, and the El Paso plant assembles the pieces into finished jeans. In a given year, the Juarez plant ships $40 ..
What is one advantage of running a logit regression : Which of the two  specifications fits the data better? How can you tell? What is one advantage of running a logit regression instead of estimating a linear probability model with OLS?
Problem regarding the resource constraints profit : a) Identify and explain the shadow prices for each of the resource constraints. b) Which of the resource constraints profit the most and why?
The game is simultaneous because the goalie : The game is simultaneous because the goalie must choose before seeing where the kick is going.  Here's a matrix - assume the values are payoffs for the kicker for doing one thing and for the goalie doing another (like they're probabilities of beating..
A production function only uses one input labor : A production function with constant returns to scale can exhibit diminishing marginal product of its inputs.Suppose a production function only uses one input, labor.  If production displays constant returns to scale, then it does not exhibit diminish..

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd