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The table and graph shown below illustrate the demand and supply schedules for television sets in Venezuela, a "small" nation that is unable to affect world prices.
Suppose Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import? Assume that Venezuela imposes a quota that limits imports to 300 TV sets. Determine the quota induced price increase and the resulting decrease in consumer surplus. Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect. Assuming that Venezuelan import companies organize as buyers and bargain favorably with competitive foreign exporters, what is the overall welfare loss to Venezuela as a result of the quota? Suppose that Venezuelan exporters organize as a monopoly seller. What is the overall welfare loss to Venezuela as a result of the quota?
Jack and May are the only residents of a small island. Jack operates a paper-mill, and has expenses given by MPC = 10+2Q. Jack gets a value of $24 for each unit of paper he sells.
Write a very brief introduction indicating why you chose this particular firm. Give a brief summary of the firm's history and type of business and industry it is in. Examine the firm's operations and forecast for the next 3 to 5
Why are common borders and cultural similarities often an additional factor to determine who trades most with whom and why? Use your knowledge of the gravity model to justify your answer through two suitable examples.
The Economist reports that the interest rate per year is 5.93 percent in the United States and 70.00 percent in the Turkey,in the October 23, 1999 issue.
Many people think of marketing as only promotion; they only look the tip of the marketing iceberg. However, marketing is much more.
The firm produces a global positioning system that sells for $1,000 with costs of goods sold of 48 percent of sales. Compared to the US, China offers a 6 percent cost reduction
With the various sectors fighting each other in order to influence Japanese policy-makers, what is likely to happen to the yen and why was the yen strengthened even though the Japanese economy has been in a very sluggish growth pattern for a decade..
Suppose the spot exchange rate in dollars and yen is e=$1/100yen. The interest rate on a 6 months dollar denominated assets is i($)=1 percent and interest rate on comparable 6 months yen denominated assets
One year ago, a United State investor converted dollars to yen and purchased one hundred shares of stock in a Japanese company at a price of 3,150 yen a share.
For a world in which international trade would be according to the differences featured in the Heckscher-Ohlin theory, the shift from no trade to free trade is like a zero-sum game.
The given table lists the stages needed in the production of a personal computer. Determine the value of the computer in the GDP?
Your proposal to develop into 3-countries was approved by CEO. Now you have to make decision on a strategy - will PM firm simply sell its item or expand its markets via investment?
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