Improved long run productivity

Reference no: EM1319729

Assume the Japanese industry started in 1955 with production of 100,000 cars per year and an initial cost of 2,000 and that production grew 50% per year for the next five years and then 25% per year for the next ten years. If Japanese relative costs compared to the US dropped 20% for each doubling of accumulated experience, in which year would Japanese costs equal US costs if the US cost per car in 1955 was $1500? Given a real discount rate on Japanese government bonds of 6% during this period, by 1970 was the cost to Japan of protecting this industry recovered due to its improved long run productivity compared to having imported cars from the US?

Reference no: EM1319729

Questions Cloud

Hypothesis testing of a single mean : Taking α to be 0.05, what is/are the critical values associated with testing your hypothesis?

Sources of competitive advantage : What are the three sources of competitive advantage available to international businesses that are not available to purely domestic businesses?

Human resources department and upper management : Write a memo from the human resources department to upper management. Remember to describe the situation and explain the new policy. Consider some of the possible objections to this new policy and offer some solutions to alleviate employee's anxiety.

Identify the kind of random variable : Classifcation Which of the following are continuous variables and which are discrete?

Improved long run productivity : Given a real discount rate on Japanese government bonds of 6% during this period, by 1970 was the cost to Japan of protecting this industry recovered due to its improved long run productivity compared to having imported cars from the US?

Time-series forecasting model : What is a time-series forecasting model? What is the difference between a causal model and a time-series model? What is a qualitative forecasting model, and when is it appropriate?

Strength in core technologies and financial staying power : ABC Company wishes to enter a new market arena on the basis of its strength in core technologies and financial staying power. However, the market arena in question is currently dominated by a major competitor with 80 percent of the market share.

Required probability for given probability distribution : By using the age midpoints x and the percentages of nurses, do we have a valid probability distribution? Describe.

Confidence interval estimate for true population mean : Following data represent random sample of bank balances for population of checking account customers at large eastern bank. Based on data, determine the 95 percent confidence interval estimate for true population mean?

User Account

All Pages