If Able Drug Company already has a patent on a drug called drug Z27, then they have the rights to charge it higher than cost of production. They do this so that they would gain profit from the drug that they have patented and to be able to expand their business more with it.
Answer:
The effective rate of protection for the U.S. steel industry is approximately 17.5%
Explanation:
Mathematically, the effective rate of protection is calculated as follows;
e = (n-ab)/(1-a)
where n is the nominal tariff rate on the final product , a is the ratio of the value of the imported input to the value of the finished product and b is the nominal tariff rate on the imported input
Mathematically;
a = value of iron ore/value of steel = 100,00/500,000 = 1/5 = 0.2
From the question, we can see that nominal tariff rate for steel n = 15% = 15/100 = 0.15
The nominal rate for iron ore b = 5% = 5/100 = 0.05
So we substitute all of these into the equation of e above
e = {0.15-0.2(0.05)}/(1-0.2) = (0.15-0.01)/0.8 = 0.14/0.8 = 0.175 which is same as 17.5%
First answer is c and the second answer is a
Answer:
new corn farmers will enter the market and decrease the market price.
Explanation:
In regards to the information provided, it can be said that in a long term perspective if the production of ethanol keeps increasing then new corn farmers will enter the market and decrease the market price. This is because as ethanol production increases, so does the price of corn. This will continue up to a certain point were profitability for farmers is high and many new farmers will enter the market hoping to profit from the corn as well. All these new farmers will drastically increase the production of corn and as the supply of corn rises the prices will begin to fall.
Considering the business planning strategies, the phase of the goals-based strategic planning that involves an in-depth analysis of the company and its competitors is "<u>Analyze the situation</u>."
This is because, during this stage, firms can carry out an analysis that is often called SWOT analysis.
This allows the business firms to carry out the analysis on their own strength, weakness, and then opportunities and threats of their competitors.
Some other the phases of the goals-based strategic planning include the following:
- Set direction;
- Define strategies;
- Deploy plan
Hence, in this case, it is concluded that the correct answer is "<u>Analyze the situation."</u>
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