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Assume the following: the world price of shoes is $100 per pair. The value of imported leather is 70% of the value of the shoes (or $70). The tariff on shoes is 20% while the tariff on leather is 15%. Calculate the Values Added and use them to derive the Effective Rate of Protection or ERP.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 80 – .5P, and the marginal cost of production is $100. a. Determine the optimal number of units to put i..
f the money supply is Ms1 and the goal of the monetary authorities is full-employment output Qf, they should:
In the medical care sector, the decisions of what services should be produced, how they should be produced, how they should be distributed, and how to allow for growth and innovation must be made. What combination of non-medical and medical goods and..
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
In a competitive industry, the market-determined price is $3. A firm in this market is producing 36,000 units of output, and, at this output level, the firm’s average total cost reaches its minimum value of $3. How much total profit is the firm makin..
Which environmental protection equipment alternative should be selected? The firm MARR is 20% per year. Assume the equipment will be needed indefinitely. Assume the study period is shortened to five years. The market value of alternative B after five..
Last winter, the price of home heating oil increased by 20% and the quantity demanded of home heating oil decreased by 2%. At the same time, with no change in the price of wool sweaters, the quantity demanded of wool sweaters went up by 10%.
Labor Supply. Catholic priests take a vow of chastity, forgoing marriage and intimate non-marital relationships. This question relates to the article posted on Angel
Suppose the US dollar depreciates against other currencies. Under the linked exchange rate system, Hong Kong pegs its nominal exchange rate to the US dollar. What would happen to the prices of goods and services (in terms of US dollars) in Hong Kong ..
Explain how does global economic competition impact price elasticity in domestic market and decisions related to strategy a firm uses to compete. Why do most economists oppose trade restrictions.
q1. in early2010 molly paid 200000 for a house built in 2000. she spent 30000 on new materials to remodel the house.
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20,000 bottles of wine were sold every week at a price of $4 per bottle. After the tax, 13,000 bottles of wine are sold every week; consumers pay $5 per bottle, ..
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