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The XYZ Corporation is an American company that manufactures the parts needed for its products abroad in country M. It assembles them in the U.S. The transfer price is $500 and the exchange rate is 2 units of M-pesos for $1.
In April, the company will ship 1000 units from country M to the U.S. The plant, in country M, has variable costs of 650 pesos and fixed costs of 20,000 pesos. The processing cost in the U.S. is $10 per unit with fixed operation costs of $1000. The final product can be sold for $750 each. If the tax rate in country M is 20%, while in the U.S. it is 40%; what is the profit in each country? What are the combined profits in U.S. dollars for the month? What happens if we change the transfer price to $600? Why?
Why is perfect competition usually a preferable market structure compared to monopoly? Discuss the conditions under which a monopoly would be the preferable market structure for productive efficiency.
debbie listens only to frank zappa or weird al yankovic. she currently buys 10 zappa and 20 yankovic downloads per
Determine the impact of the increase in the price of soybeans on the rental rate of land and determine the impact of the increase in the price of soybeans on the welfare (real wage) of labor.
car breaks down and you are deciding to have it repaired. The most relevant issue in this economic decision is:A. How much you spent on past repairs on the car B. How much you paid for the car when you bought it
With an unprofitable rural hospital that was offered a contract at a lower price, what are major economic concepts that are important in making the right decision?
Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..
in light of what is happening in the european union today do you think a controlled default can occur with insolvent
if the price of breakfast cereal falls from 6 to 3 and this leads to an increase in demand for milk from 30 to 40
barry a texas crude company engineer who did not take engineering economy while studying at tech recommended that texas
Discuss a firm's objective relative to its economic cost. Describe each of the firm's economic cost, and whether these would be considered explicit or implicit. What is the difference between an economic profit and an accounting profit.
Was there a redundancy of information in part (b)? If yes, how much is the minimum amount of information required in that question to derive the utility function?
Find Total Revenue or profit
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