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A drug manufacturer sells a major drug in Europe and in the United States. The demand curve for the drug in Europe is P E = 10 - Q E, where P E is the price (in dollars per pound) and Q E is the quantity (in millions of pounds) sold in Europe. The demand curve for the drug in the United States is P U = 20 - 1.5 Q U, where P U is the price (in dollars per pound) and QU is the quantity (in millions of pounds) sold in the United States. The total cost (in millions of dollars) of producing the drug is TC = 4 + 2 Q, where Q = Q E + Q U. If the drug manufacturer uses a third degree price discrimination strategy, then what are the profit maximizing prices in Europe and in the United States?
Let us determine what happens to exchange rate between the U.S. and imaginary country of Oz. The ruler of Oz is a totalitarian wizard. Since the economy of Oz is centrally planned
What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
Economists generally use Porter's 5-forces framework when making a qualitative evaluation of a company's strategic position. According to Porter, his model should be used at industry level,
The United Kingdom pound is trading at 1.82 U.S. dollars per United Kingdom pound. There is purchasing power parity at this exchange rate.
The organization that develops and recommends to the U.S. President national economic policies to foster maximum employment, production, and purchasing power is the a. Joint Economic Committee
The United State imports Japanese cars with a domestic price of 5,000,000 yen and the yen or dollar exchange rate is 120 on January 1, 2003.
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
Assume that, from an initial equilibrium rank in the offer curve diagram, nation I imposes a tariff on country II's export good at the same time that customers in country II change their tastes toward wanting more of II's export good.
Discuss the characteristics of international, multidomestic, global, and transnational strategies. Include situations and a specific example in which each strategy would be most appropriate.
If the European slump also leads to a slowdown of the other economies that import goods from the United States, the effect could be larger. Assume that US exports decrease by 5% (as a result of changes in foreign output) in one year. What is the ..
What is the diff erence between Absolute and Relative PPP? Which theory requires fewer assumptions and give two reasons why Absolute PPP might not hold in the short-run.
Discuss each of the six indicators, and explain its current status. In addition, present a separate graph for each indicator illustrating the historic trend for each.
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