Subsidy may provide import-competing producers

Assignment Help Business Economics

Reference no: EM13854565

Explain why a subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare.

Reference no: EM13854565

Questions Cloud

Calculate the first-order condition : The problem is to choose x to maximize f(x;a) = ax- 3x^2, where á is exogenous, subject to the constraint. Calculate the first-order condition for this problem. For this problem, which values of x are on the boundary, and which are in the interior?

Using the characteristics of the monopoly structure : Using the characteristics of the monopoly structure to help you, discuss the arguments for and against monopolies. Explain the moral hazard problem and the adverse selection problem. Describe the difference between them, and discuss instances where t..

Greater welfare loss for the domestic economy : Which results in a greater welfare loss for the domestic economy.

Prepare general journal entries to record august transaction : Macintosh Inc. was opened for business on August 1, 2014. The following events and transactions. Prepare the general journal entries, in proper format, required to record all of the August transactions.

Subsidy may provide import-competing producers : Explain why a subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare.

Suppose the market of chocolates is unregulated : Suppose the market of chocolates is unregulated. That is, chocolate prices go are free to adjust based on the forces of supply and demand. If an excess demand exists in the chocolate market, then the current price must be _____ (higher/lower) than th..

Historical issues surrounding your topic : Create a Bibliography page using correct Turabian bibliographic citations - An article entry in a biblical or theological dictionary that would be useful for understanding the historical issues surrounding your topic

What happens to the investment in our small open economy : Suppose that some foreign countries begin to subsidize investment by instituting an investment tax credit. What happens to the investment in our small open economy? What happens to our trade balance? What happens to our real exchange rate?

Long-run impact of an increase in budget deficit : Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? What..

User Account

All Pages