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- Assume that consumers value a high quality piece of furniture at 5000 and a bad quality one at 3000. Assume that producing a bad quality piece of furniture costs the manufacturer 3500 and producing a high quality one costs 5000. . A) If the manufacturer is a monopolist, what will be the equilibrium sales prices on this market? B) How would your answer change, if the cost of producing a low quality piece of furniture went to 2900?This figure shows demand and supply for a product in country A, which is interested in engaging in international trade. The import price from country B is $3 and from country C is $4. Country A imposes a fixed tariff of $2 per unit of import. Answer the following questions based on these assumptions. Demand Supply O creation will be FJ O diversion will be FJ O creation will be TS O diversion will be TS Querits Based on information provided in the figure above, if country A decides to enter into a free trade agreement with country B, the amount of tradeSuppose a big country with a good's demand described by P = 60 - 3Q and a good's supply described by P = 8 + Q implements a $9 export subsidy, which ultimately decreases the world price from $27 to $24. (a) Calculate the total surplus under each scenario: no trade, free trade, and protected trade. (b) Calculate the distortion loss of the export subsidy. (c) Suppose the increase in exports resulted in an increase in the current account, while primary budget deficit and private saving remained the same. What happened to the economy's investment?
- E PRICE (Dollars per gigabyte of data) The following graph gives the demand (D) curve for 5G LTE services in the fictional town of Streamship Springs. The graph also shows the ma revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local 5G LTE company, a natural monopolist On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. 20 18 ATC 2 MR MC D 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Gigabytes of data) Monopoly Outcome Which of the following statements are true about this natural monopoly? Check all that apply. In order for a monopoly to exist in this case, the government must have intervened and created it. The 5G LTE company is experiencing diseconomies of scale. The 5G LTE company is experiencing economies of scale. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. True or False: Without…The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. (? 100 90 Monopoly Outcome 80 70 60 50 40 ATC 30 MC 20 10 MR D 2 6 8 10 12 14 16 18 20 QUANTITY (Number of subscriptions) Which of the following statements are true about this natural monopoly? Check all that apply. O In order for a monopoly to exist in this case, the government must have intervened and created it. O The cable company is experiencing diseconomies of scale. O The cable company is experiencing economies of scale. O It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. True or False: Without government…Write a 10 page paper for an international economics class. The topic is the Effects of the U.S imposing tariffs on Chinese steel imports on the American economy, particularly the steel industry and jobs in that industry. Include analysis on the effect of U.S steel prices, jobs, welfare effects (consumer and producer surplus).
- Graphically depict the market for hogs in China, assuming that the demand curve slopes down and the supply curve slopes up. This is purely an analysis of the impact of African swine fever. It is true that trade wars between the U.S. and China are significant, but for this analysis, we are just looking for the impact of the deadly swine fever independent of any other external shocks to the Chinese pork production industry.Pr - 2 Pw = 1.80 P; = 1.50 40 50 80 90 This graph shows the Home's market demand and supply. Home is a large country imposing a specific tariff on Foreign. Compute the total efficiency loss. (report you answer as a positive number)Consider a large country with the following inverse demand and supply functions of golf clubs: P = 100 - Q. P = 20 + Q. The world price of golf clubs is 80. This country's government decided to support domestic golf club producers and introduced an export subsidy of 20, which led to a decrease in the world price to 70 per club. The world's deadweight loss, associated with this subsidy is then equal to
- Question 3 options: CBS is selling advertising for its broadcast of the AFC championship game. The station’s demand for minutes of commercial advertising time is the demand it faces from the companies to which it sells advertising time: PADS = 100,000 - 50Q. CBS has MC = $2000. Buyers pay CBS a price PCBS for each minute of advertising and add $1,000 for each ad to cover the tax they pay, so their MCADS= PCBS + 1000. No one has any fixed costs. The profit for CBS is (include dollar sign and any commas, no decimals)The demand curve for wine in Italy is given by D = 20 2P. Its supply curve is given by S = 2P – 4. Italy is a small country. The price of wine in the world market is $3. Suppose that the Italian government's objective is to protect the domestic wine industry. It imposes a specific tariff of $2 on wine imports. The optimal tariff (i.e., the tariff that maximizes Italy's welfare) on wine for Italy is: 0 1 2 3 none of theseBelow is a hypothetical example of an estimated industry supply curve for automobiles.Qs = 4000P – 50,000PL - 3,700PT – 400,000PK - 1000T Where:P : Average Price of an AutomobilePL: Average Price of Labor per Hour (the wage rate)PT: Average Price of TrucksPK: Price of Capital – Interest Rate – iT: Tariff on Imported Cars Assume:PL = $30 per hour PT = $15,000PK = 10%T = $1,000 PL = $30 per hour Slope parameter associated with the average price oflabor is -50,000PT = $15,000 Slope parameter associated with the average price oftrucks is -3,700PK = 10% Slope parameter associated with the price of capital (theinterest rate) is -1,000 (in your equation express theprice of capital as 10)T = $1,000 Slope parameter associated with the tariff is – 1,000 a. Derive the supply curve for automobiles as a function of price holding all other things constant. b. Graph the supply curve in linear form as a function of price only indicating the quantity supplied at a price of -0- or the vertical…