In the Heckscher-Ohlin model with intermediate goods in equilibrium international supply chains will minimise cost of intermediate good inputs for final good production. True False
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In the Heckscher-Ohlin model with intermediate goods in equilibrium international supply chains will minimise cost of intermediate good inputs for final good production.
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- Which of the following statements regarding price elasticity is incorrect? a. A product with a perfectly inelastic demand would have the same demand even as prices change. b. A product with a perfectly inelastic demand would see demand change as prices change. c. When demand is price elastic, lower prices stimulate demand. d. When demand is price elastic, higher prices reduce demand.ANSWER TRUE OR FALSE Transfer prices can be used to promote goal congruence among operating segments of an organization. In computing a transfer price, the maximum price should be no higher than the lowest market price at which the buying segment can obtain the good or service externally. In computing a transfer price, the maximum price should be no higher than the highest market price at which the buying segment can obtain the good or service externally. In computing a transfer price, the minimum price should be no lower than the incremental costs associated with the goods plus the opportunity cost of the facilities used. One of the main factors to consider when using a cost-based transfer price is whether to use actual or standard costs. When using a negotiated transfer price, a decision must be made which market price to use. When using a market-based transfer price, a decision must be made which market price to use. When using a market-based transfer…Which of the following statements regarding price elasticity is incorrect? A product with a perfectly inelastic demand would have the same demand even as prices change. A product with a perfectly inelastic demand would see demand change as prices change. When demand is price elastic, lower prices stimulate demand. When demand is price elastic, higher prices reduce demand.
- “Transfer pricing is confined to profit centers.” Do you agree? Explain.D4) Analyze the following statement: When purchasing power parity really holds, comparative advantage becomes the only important criteria in choosing a production location. Explain in detail what this means, if it is true, and what other potential criteria can be used.5. Offer curves tell us a) The demand and supply of both goods at different relative prices b) The demand for import good only at different relative prices. c) The supply of export good at different relative prices. d) None of the above. CHOOSE ONE ANSWER ONLY.
- Is it impossible when the new sales price is higher than the original price if we remove tariff. -the quantity of firm A and B is higher when the firm C remove tariff, and the quantity of firm C decrease.Historical and current exchange rate information is already reflected in today’s exchange rate and is not useful for forecasting. This is referred to: a. Strong-form efficiency or Strong-form efficiency b. Strong-form efficiency c. Semistrong-form efficiency d. Weak-form efficiencyThe profit maximizing condition for a purely competitive firm is when. Price elasticity of demand is positive. Price average total costs O Price - average total costs
- Define price elasticity of demand. Give an example of a product with relatively elastic demand and an example of a product with relatively inelastic demand. (Give examples not given in the text.)If an outside, perfectly competitive market exists for the intermediate product, what should the transfer price be? Why?the link between short-run average costs and long-run average costs? Explain the association between return to scale and economies of scale and suggest the potential sources of internal and external economies of scale. Why might firms face diseconomies of scale and shutdown/break-even situations in the long run?
