Answer:
Option (b) is correct.
Explanation:
There are three types of price discrimination:
(i) First degree price discrimination or Perfect price discrimination
(ii) Second degree price discrimination
(iii) Third degree price discrimination
Perfect price discrimination refers to a situation in which the selling price of the product is equal to the price that a consumer willingness to pay for the product. This is a situation in which there is no consumer surplus.
Consumer surplus = Actual price paid by the consumer - Willingness to pay for the product
Answer:
The effective rate of protection for Canada’s steel industry is 21%
Explanation:
The computation of the effective rate is shown below:
Steel percentage = (Production worth of steel) ÷ (Taconite worth)
= ($1,000,000) ÷ ($100,000)
= 10%
And the tariff rate for steel is 20%
And the taconite percentage is 10%
So, the effective rate would be equal to
= Tariff rate for steel + taconite percentage × steel percentage
= 20% + 10% × 10%
= 20% + 1%
= 21%
Answer:
a. leverage skills and products associated with a firm's core competencies from one country to another.
Explanation:
Company A can still meet the demands of the local markets and the competitive pressures it is facing by utilizing its core competences and deploring its products internationally. A hybrid of localization and international strategies would be more appropriate. This hybrid approach will enable the company "to realize the full benefits from economies of scale and learning effects, without losing on location economies," as desired in the case study.
Answer:
1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus
Explanation:
Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.
Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.
1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.
2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)
3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) & actual sale price ($199)
Answer:
The answers are:
A) 25.23 million people
B) 70.28%
C) 4.92 million people
D) 19.50%
Explanation:
Laborland's total labor force can be calculated by adding those who are employed and those who are unemployed but were searching for a job during the last month.
- 4.6 million (part-time employed) + 15.71 million (full-time employed) + 3.2 million (looked for a job two weeks ago) + 1.72 million (looked for a job between two and four weeks ago) = 25.23 million people
Laborland's labor force participation rate can be calculated by dividing the labor force by the total population.
- (25.23 million / 35.9 million) x 100% = 70.28%
Laborland's total unemployed can be calculated by adding the number of people without a job that searched for a job during the last month.
- 3.2 million + 1.72 million = 4.92 million people
Laborland's unemployment rate can be calculated by dividing the total number of unemployed people by the total work force.
- (4.92 million / 25.23 million) x 100% = 19.50%
