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To take advantage of the "international bike shortage", Giant, the world largest bike manufacturer from Taiwan, resumed producing bikes for the US market in China. Presently, the US tariffs on the bikes produced in China make them more costly to deliver to American consumers compared to the bikes produced in Taiwan.
Suppose that prior to the pandemic, the average cost of a Giant bike sold in the US was $100 and all bikes were produced in Taiwan. Presently, the cost of those bikes did not change, but because of the added production in China, the average cost of a bike sold by Giant in the US is $106 and 30% of the bikes presently sold by Giant in the US are manufactured in China. To keep things simple, assume that the bike making technology in China exhibits constant returns to scale, so that every bike is equally costly to produce. What is the best way to estimate Giant's marginal cost in the US?
bullthe table and graph shown below illustrate the demand and supply schedules for television sets in venezuela a small
From 1982 through 2000, the S&P 500 stock price index rose an average of 14.7% per year (all figures in this problem are annual averages).
Assume each worker is paid $10 per hour and works a 40-hours week. How many workers should the firm hire if the price of the output is $ 10? Suppose the price of the output falls to $7.50.What do you think would be the short-run impact on the firm..
Give a critical evaluation of the way in which this concept has been affected by the theories of Maynard Keynes, Karl Marx, Milton Friedman and political expediency and /or dogma.
The chapter began by discussing another tax that targets wealthy individuals: the estate tax. Comment on the effectiveness of this tax.
The fertilizers used in soybean production generate a negative externality by seeping liquid contaminants into local rivers.
Which of the following bonds has a higher current yield - i) a 6% coupon bond whose market price and face value are equal to $1000 or a ii) 7.5% coupon bond with $1000 face value and market price of $1250?
For the Japanese female face, y¯ = 10.2% and s = 31.3%. The researchers used this sample information to test the null hypothesis of a mean level of feminization equal to 0%. Verify that the test statistic is equal to 2.3.
When a firm focuses on increasing profitability by customizing the firm's good or services so that they provide a good match to tastes in different national markets, it is pursuing A Localization strategy.
In this section of your presentation, you will identify the issue that your executive has inquired about. A. Describe the context of the issue that was presented to you and the specific statements that you will research.
Suppose there are 15,000 people living in Madison in 2008. Out of these 15,000 people, 4,000 are either too old to work or too young to work. What is the size of the labor force in Madison in 2008
Is it possible that a bidder might receive useful information during the auction, particularly from the dollar amounts other bidders are bidding? If so, how does that change a bidder's optimal strategy?
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