Economic incentive.

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Answer 1

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

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The following graph shows the downward-sloping demand curve for Oiram-46, a monopolist producing unique magic hats. The graph also shows Oiram-46's marginal revenue curve and its average total cost curve. On the following graph, use the orange point (square symbol) to indicate the profit-maximizing quantity. Use the blue point (circle symbol) to indicate the profit-maximizing price. Use the purple point (diamond symbol) to indicate the average total cost. Use the tan rectangle (dash symbol) to show Oiram-46's total revenue and the grey rectangle (star symbol) to show its total cost. PRICE (Dollars per magic hat) 2 0 20 Marginal Cost 18 ATC 16 Profit-Maximizing Quantity 14 12 Profit-Maximizing Price MC 8 Demand 02 4 6 8 10 12 14 16 18 20 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit is equal to 5 TOTAL SCORE: 1/4 Average Total Cost Total Revenue Total Cost Grade Step 2 (to complete this step and unlock the next step)

Answer 2

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

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Answer 3

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Answer 6

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Answer 7

Chapter 1, Problem 1TC

To determine

Economic incentive.

Answer 8

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Answer 12

Ch. 1.A - Prob. 1PA Ch. 1.A - Prob. 2PA Ch. 1.A - Prob. 3PA Ch. 1.A - Prob. 4PA Ch. 1.A - Prob. 5PA Ch. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PA Ch. 1 - Prob. 1TC Ch. 1 - Prob. 2TC Ch. 1 - Prob. 1.1.1RQ

Economic incentive.

Economic incentive.

Explanation of Solution

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