The following costs were estimated from steel operations in the US and Japan by Peter Marcus in Comparative Circumstances of Major Steel Mills in the US, European Community, and Japan (1982). Numbers represent costs per ton of steel for labor, capital machinery, and material inputs: Which country spent more on labor input? What are two possible reasons? If it costs $100 per ton to ship steel to the US, find the cost of Japanese steel in the US if Japanese profit is zero. If Japanese producers make a 2% profit, find the price of Japanese steel in the US. Would US producers want to allow less than 2% profit for the Japanese producers? Where will US producers want the trigger price?

ENGR.ECONOMIC ANALYSIS
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The following costs were estimated from steel operations in the US and Japan by Peter Marcus in Comparative Circumstances of Major Steel Mills in the US, European Community, and Japan (1982). Numbers represent costs per ton of steel for labor, capital machinery, and material inputs:

Which country spent more on labor input? What are two possible reasons? If it costs $100 per ton to ship steel to the US, find the cost of Japanese steel in the US if Japanese profit is zero. If Japanese producers make a 2% profit, find the price of Japanese steel in the US. Would US producers want to allow less than 2% profit for the Japanese producers? Where will US producers want the trigger price?


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