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For each car that Acme U.S. sells, this table summarizes the information on the revenue and costs for the three firms. It shows the initial price that Acme U.S. pays Acme Mexico, $3,000 per engine. In some problems, you will be asked to consider how things change if it increases this price to $3,500 per engine.
US HYRDOELECTRICRevenue: $500Payment to Workers: Purchased Inputs: $0
Acme USRevenue: $15000Payment to Workers: $10500Purchased Inputs:Engines $3000Elecricity $500
Acme MexicoRevenue: $3000Payments to Workers: $2200Purchased Inputs: $0
Suppose that the U.S. government collects a 35% tax on all corporate profit earned in the United States and that the Mexican government collects a 20% tax on all corporate profit earned in Mexico.
After Acme U.S. and Acme Mexico pay taxes in their respective countries, how much income is left over for the shareholders of Acme Worldwide on each car that Acme U.S. manufactures and sells?
In some developing countries, you can see modern airports, huge government buildings, and new highway system around the capital city. However, those countries' real GDP are still low. Would you provide the possible reason to explain why
Discuss and explain the optimal method for procuring a modest number of standardized inputs that are sold through several companies in the marketplace.
What will be the effects of an increase in the money supply
Consider an increase in U.S. investment demand. Draw a complete and fully-labeled diagram of the open-economy macroeconomic model to illustrate your answer. What happens in the market for loanable funds, to net capital outflow, and in the market f..
Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
a. Why would it be counterproductive for the Bank of Canada to fix the value of the exchange rate b. What is the effect of this policy on the interest rate in the long run How do you know
Evaluate the relationship between the European Euro crisis in 2012 and the American economy. Assess how this affects American businesses and decisions made by mangers related to sustainable profitability. Provide examples with your response.
Define brand equity and discuss what a firm can do to maintain brand equity. Discuss Product Life Cycle Concept and include the relative amounts of sales and profit during each stage.
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.
Discuss the difference between a traditional monopoly and a natural monopoly. Include the following points in your discussion. Identify the incentives to produce and price the product for a traditional monopoly and natural monopoly.
The demand curve in these markets is almost perfectly elastic. Those sectors that are exposed to global competition usually referred to as the "tradeables" sector, while sectors that are not as vulnerable to external competition.
A farmer and a rancher currently lead a subsistence existence, manufacturing only meat and potatoes. The farmer could make two units of meat per forty hour week,
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