Suppose American sugar producers convince the federal government to issue a directive to put a tariff on foreign sugar. This would be an example of the principal-agent problem. logrolling. rent-seeking. moral hazard.
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- Romilo produces 250 different varieties of potatoes sourced from nearby villages, suggesting he likely lives in: Maine China Ireland Peru, or maybe Chile All of the following are reasons that foreign countries and corporations engage in long-term leases of land or outright land purchases in other countries EXCEPT: These countries and corporations may be concerned about the long-term food security of their home population These countries and corporations have a stated goal of promoting neo-colonialism These countries and corporations may be pursuing a strategy to ensure energy security These countries and corporations may be interested in low prices for labor and land CITES seeks to preserve the existence of endangered species. This existence value is a __________. CITES is effective, but very narrowly focused on __________. public good, fish private good, rhinos…A pharmaceutical company is the only producer of a particular drug. It sells that drug in two countries, one rich and the other a development country. The inverse demand for the drug in the rich country is pr(qr) = 20 – 2qñ, and in the developing country it is pp(qp) 10- qp. The total cost of production is C(qR, qp) = (qr+qp)². What is the profit-maximizing quantity in the rich country, qR? (a) qR = 1 (b) qR = 3 (c) qR = 6 (d) qR 8 (e) qR 14From the 1990’s to now, the market has changed considerably, with DeBeer having to adapt to new challenges. The first is the introduction of direct competitors. Russia’s state-owned diamond company ALROSA now produces more diamonds than DeBeers itself. Some new firms even bought mines from DeBeers when the company was trying to support their balance sheet. Another change is the introduction of substitutes, with synthetic diamonds becoming more appealing to price-conscious young shoppers. Advances on the production of these products are fairly recent, notably, in 2015 New Diamond Technology displayed the potential of synthetics by creating a ten-carat polished diamond. This means the market is changing from monopoly to monopolistic competition. We know that entry of other firms will cause the monopolists demand curve to shift. 4. From the 1990s to now, the market is changing from monopoly to monopolistic competition. Explain reasons for this change.
- American companies form the majority of MNCs (multi-national corporations). On the other hand, many people believe that Americans are poorly equipped to assist an organisation to enter into a non-American culture. Explain the characteristics of the American culture that would prohibit the understanding and empathetic behaviour towards another culture.A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description.Elvira College has an enrollment of 1,000 students and is located in a small Midwestern town named Johnsonville. Johnsonville has a total population of 2,500 people. The nearest town is 20 miles away. Most of the residents shop locally, but they travel about once a month to the larger city and pick up the large-ticket items. Johnsonville has one fairly good-size supply store named Jameson's Grocery. The only other place in town where you might buy supplies is at the gas station/convenience store located on the edge of town. What competitive situation is Jameson's Grocery experiencing?Competitive Situation:Explanation:
- Casinos in the US wanted to purchase decks of cards made in Mexico. It costs less than half the price paid to US suppliers. However, the price is based on the product outside the Mexican manufacturing doors. The US firm must find a way to transport the cards to the US. This is a problem given the current US regulations on transportation between Mexico and the US and the strong truck drivers union. In this case, casinos are experiencing: Underinvestment in Mexico. Language and cultural barriers in management. Limited SI in Mexico. High transaction costs and possible hold up problems.Two countries-A and B. Downward-sloping market demand in both. Firm Marginal Cost is upward sloping. The market price in A is higher than in B. Claim: the Marginal Cost in A is higher than in B. Agree, Disagree or It Depends? Explain your reasoning. Keep your responses short and precise. Under 250 words is a good rule of thumb.In which of the following situations would the supplier have the greatest power to hurt a business that is its customer? The supplier is one of 100 companies selling the input needed by the business. The business could use an alternative input mix that uses significantly less of the supplier's product. The supplier rents building space to a bakery in a real estate market with a vacancy rate of less than .5%. The cost for the business to switch to a different supplier is low. 1.
- There are four common ways for a firm to expand it's operations into overseas markets: importing, exporting, licensing, and franchising. First, explain what each approach entails. Then, select the one that you'd use if you were the CEO of a large company. Why was this approach particularly appealing?A large restaurant business in the USA (hundreds of locations in several states) that is considering expanding its locations to another country. There is one country to consider is India. what is the one reason to expand to India.To properly decide the most appropriate path the firm should take to enter a foreign market we need to, first, look at the advantages and disadvantages of its options. There are many options from exporting to Licensing. However, the firm has settled on three different options: 1.) Exporting; Advantages – This choice allows the firm to avoid the large costs of setting up operations overseas. Exporting can lead to a successful experience curve as well as location economies. Disadvantages – Possible high costs of exporting that may prove to be unprofitable and uneconomical. The firm must trust a third party to hold its product and market it in such a way that it sells well. The firm could dislike the way that the third party is doing this. 2.) Setting up a Wholly Owned Subsidiary: Advantages – Reduces risk of losing control of technological competence. Gives the firm tight control of its operations overseas. This could also lead to a successful experience curve and/or…