Answered: (1) Would you characterize Industry 4.0…

(1) Would you characterize Industry 4.0 as arevolution or more of an evolution? Why? (2) Whymight various companies have an interest inpromoting Industry 4.0 as a conceptual “brand”?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 5SQP

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Plesco is planning to establish a subsidiary in the US. This subsidiary will employ up to 50 workers, will have an office and a special storage for laptops. When designing the corporate form of the subsidiary Plesco wishes to limit its own liability so that the subsidiary is fully liable for all debts and obligations before its clients. At the same time, Plesco does not want this subsidiary to become a public company –- all shares should belong to Plesco so that Plesco could exercise full control. In addition, Plesco does not want a complicated organizational structure. An optimal tax regime would also be preferable for the owners of Plesco. One of the Plesco's plans includes registering a trademark “Plesco" for laptops. As laptops are the company's most successful product, Plesco is not planning to sell anything else in the US. However, having monitored the market, Plesco found that a trademark "Plesco" had already been registered for chocolates by USPTO. The owner of trademark in the…
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6. Consider the US automobile industry, where firms with heterogeneous productivity, subject to increasing returns to scale, produce a differenti- ated good and sell it in a monopolistically competitive market. Firms can decide whether to perform the entire production process in the US, or off- shore (through vertical FDI) part of the process, representing a share B of the variable cost, in Mexico, where wages are lower (WMEX fD). Suppose that the US government increases the share of variable cost that has to be sourced in the U.S., so that B falls. Then: (a) only the least productive US multinationals would reduce FDI (i.e., the volume of production in Mexico) and increase their price (b) only the most productive US multinationals would reduce FDI (i.e., the volume of production in Mexico) and increase their price (c) the most productive US multinationals would increase FDI (i.e., the volume of production in Mexico) and leave their price unchanged (d) none of the above
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