Answered: If the metal can production sells…

Business

Economics

If the metal can production sells 1,000,000 Pesos, what are the expected sales for fisheries and distribution?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.3P

See similar textbooks

Similar questions

Suppose the outputs of beauty shops and pet-grooming salons are complementary, providing one-stop shopping for personal and pet maintenance. Betty Beehive is thinking about moving her beauty shop from an isolated location to a vacant building next to Peter’s pet grooming shop.In making her decision, she makes the following assumptions: If Betty moves, she will keep all her current customers (20 people per week) and attract 25% of Peter’s current customers. Peter currently has 60 customers per week. 3. Excluding rent, Betty’s profit per beauty treatment is $10. 4.The weekly rent at the new location is $200 higher than Betty’s current rent. Question = If Betty moves her beauty shop, will her profits increase or decrease? By how much? Question =Suppose that if Betty makes the move, 50 percent of her original customerswill switch from George’s grooming salon to Peter’s. If Peter’s profit pertreatment is $8, how much would he be willing to pay Betty to make themove? Will the…
The Agriculture Research Center of a country (a government organization) introduced a new and innovative irrigation technique that would ensure that water usage declined by almost 40 percent. Part of this would be achieved by reducing wastage of water caused by field inundations. This would not only be more sustainable in the long run, but would also benefit farmers. Samira Fernandes, one of the leading researchers at the Center, believes that this innovation would make farming more efficient since a majority of the farmers, if not all, implemented it. Bob Johnson, her colleague, however felt that farmers might be reluctant to use the new irrigation technique. Which of the following, if true, would support Samira's view? A. Switching costs involved in adopting this new technology are low. B. Farmers in neighboring countries have usually been reluctant to use new techniques. C. Traditional farming practices have served farmers well in the past. D. The opportunity cost of the investment…
Assume a Heckscher-Ohlin model. Home and Foreign produce food (F) and machinery (M) using labor (L) and capital (K) as the unique inputs in both sectors. Both countries face the same technologies. In both countries the input requirements are fixed at akf = 2, aLF = 1, aKM = 2, and aLM = 3 (i.e., 3 units of labor are required to produce one unit of machinery etc.). Home is endowed with K = 800 units of capital-hours and L= 600 units of labor-hours. Foreign is endowed with K* = 600 units of capital-hours and L* = 400 units of labor-hours. The output of food is denoted by QF. The output of machinery is denoted by QM- a) Determine Home's capital constraint. Home's capital constraint is b) Which of the two goods is capital-intensive in the production? is capital-intensive. c) Which output mix will be realized in Home if it uses all its resources? The optimal output mix is units of food and units of machinery. d) Which good will be exported by Home? Home will export
Video streaming service Netflix is expanding rapidly around the globe. It is currently available in 50 countries with the goal of expanding to 200 countries by the end of 2016. Netflix’s international slogan is “Have content, will travel.” There are challenges to international expansion for this type of service, such as inadequate disposable household income and a low percentage of households with high-speed internet needed to stream videos. And even though almost half of France’s TV-owning households have internet-connected TVs, cultural restrictions limit Englishlanguage program content, requiring Netflix to invest in local content for French customers. The next countries to get Netflix are Italy, Spain, and Portugal. Similar to Netflix’s other European offerings, service will be offered at a price of €7.99 per month, which converts to U.S. $8.97 during the time of expansion. Refer to Appendix 2, Marketing by the Numbers, to calculate the annual market sales potential for Spain…
A growing trend to "Buy American" may encourage U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota's decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect Select one: a. a reactive strategy that would impact the competitive environmental force. O b. a negative impact as a result of adverse competitive, regulatory, and technological environmental forces. O c. a positive result from regulatory and economic environmental forces. O d. a positive response to a technological environmental force. O e. a proactive maneuver to manipulate and impact the social environmental force. In 2002, Geek Squad was purchased by leading retailer
Royal Dutch Shell has been doing business in Nigeria since the 1920s, and has announced new plans to develop oil and gas projects there. However, over the years Shell has confronted a series of episodes involving country risk. Shell’s operations are centred in Nigeria’s Ogoni region, where the local citizens have protested Shell’s drilling and refining activities, which are said to spoil the natural environment and reduce the amount of available farmland. Protestors also accuse Shell of extracting wealth from the region without adequately compensating local residents. Ogonis sabotaged Shell’s operations to such an extent that the firm suspended parts of its Nigerian operations. Shell also came under pressure to divest its Nigerian operations and to pay reparations to the locals. What proactive steps can Shell take to anticipate future country risk? What should Shell do to deal more effectively with country risk?
Video streaming service Netflix is expanding rapidly around the globe. It is currently available in 50 countries with the goal of expanding to 200 countries by the end of 2016. Netflix’s international slogan is “Have content, will travel.” There are challenges to international expansion for this type of service, such as inadequate disposable household income and a low percentage of households with high-speed Internet needed to stream videos. And even though almost half of France’s TV-owning households have Internet-connected TVs, cultural restrictions limit English-language program content, requiring Netflix to invest in local content for French customers. The next countries to get Netflix are Italy, Spain, and Portugal. Similar to Netflix’s other European offerings, service will be offered at a price of €7.99 per month, which converts to U.S. $8.97 during the time of expansion. Calculate the market sales potential using the current exchange rate between euros and U.S. dollars (see…
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air, which requires investment spending. The table below shows the level of R&D spending necessary to achieve different rates of return (due to higher ticket revenue). Private Rate of Return Level of R&D Spending 12% $100 10% $200 8% $300 6% $400 4% $500 If the opportunity cost of financial capital for HighFlyer Airlines is 6%, how much should the firm invest in R&D? Assume that the social rate of return for R&D is an additional 2% on top of the private return; that is, an R&D investment that had a 7% private return to HighFlyer Airlines would…
For the past few months, an airline has had 25% empty seats (unsold roundtrip tickets) on its Boston to New York City route and is deciding whether to change the price of its roundtrip tickets. The costs to the airline of flying between Boston and New York City do not depend on the number of passengers. There are several competing airlines offering the same service between Boston and New York City and there are train and bus options available to travelers as well. Based on this information, your best advice is: A. Keep prices the same. B. Raise prices because total revenues will increase. C. Lower prices because total revenues will increase. D. Either raise or lower prices since total revenues are not being maximized.
The city of Springfield lies at the east end of a railroad. To the west, there are one hundred miles of plains along which there are several towns-all connected to by rail. To the east of Springifeld are fifty miles of mountains, whose small villages are connected by a few winding dirt roads. The only factory in the region is in Springfield. It produces widgets at a cost of $20 per unit at the factory door. Thanks to the rail line, the transport cost to anywhere west of Springfield is $0.4 per mile. Given the poor state of the roads through the mountains, the transport costs to anywhere east of Springfield is $0.8 per mile. A) Graph the costs of widgets produced throughout the entire 150-mile region. Carefully label the costs at the factory, at the far western end of the region, and at the far eastern end of the region. B) Assume that the cost of making a widget at home is $44. What is the market area for the factory? (That is, how many miles west of Springfield will it stretch,…
You manage a company that competes in an industry that is comprised of four equalsized firms that produce similar products. A recent industry report indicates that the market is fairly saturated, in that a 10 percent industrywide price increase would lead to an 18 percent decline in units sold by all firms in the industry. Currently, Congress is considering legislation that would impose a tariff on a key input used by the industry. Your best estimate is that, if the legislation passes, your marginal cost will increase by $2. Based on this information, what price increase would you recommend if the tariff legislation is passed by Congress? Explain
Bob's Bee Emporium makes organic honey, which Bob sells at farmers' markets. The value of his Bee Emporium in its current location is $100,000. Unfortunately, Bob's bee's frequently fly to the neighboring property, Daisy's Daycare Center, and sting the small children, some of whom have allergic reaction to the bee stings. Daisy's Daycare Center business is worth $100,000, before the cost of treating any of the children, which the Daycare Center has to pay. The cost of treating the children for the bee stings is $15.000. Relocating the Bee Emporium would reduce its value by $25,000. Relocating the Daycare Center would cost $10,000. The table below shows the value of the businesses under the above conditions. Daisy's Daycare Center Present Location Relocate Bob's Bee Emporium Present Location $85,000 $90.000 $100,000 $100,000 Relocate $100,000 $90.000 S75.000 $75.000 Which situation is economically efficient? O Daycare remains in present location, bee farm relocates O Daycare remains in…