You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the United States, Congress is going to levy a $0.50 per pound tariff on all imported raw sugar—the primary input for your product. In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks. How will these events impact the equilibrium price and quantity of generic soft drinks?

Home's demand curve for wheat is P = 10 - (1/20)Qd. Its supply curve is P = 4+ (1/20)Qs Foreign's demand curve for wheat is P * = 8 - (1/20) Qd* Its supply curve is P* = 2+(1/20)Qs* Determine the effect of the tariff on Home import-competing producers APS = Home consumers ACS = Home government tariff revenue AGR= Adding these effects together AWAPS + ACS + AGR =

A federal regulation that required that all beef consumed in the US must be grown and processed in the US is likely to: Drive up the price of beef in the US Increase beef consumption in the US Decrease consumption of chicken in the US (assuming chicken is a substitute for beef in the US) Increase international trade in beef products

At these levels of output the marginal revenue in the manufactured items market is     and the marginal revenue in the semimanufactured raw materials market is    .   At these prices, the price elasticity of demand in the manufactured items market is    and the the price elasticity of demand in the semimanufactured raw materials market is    . (Hint: ED=PMR−P��=�MR−�)   What are the total profits if the company is effectively able to charge different prices in the two markets?    .   If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are    per ton  and    tons  respectively. The total profits in this situation is    .

Answer the c and d options

The government of canada recently signed a new preferential trade agreement and has agreed to pay subsidies to poultry farmers to compensate for increased competition they may face from imports. You are employed as an analyst. In order to determine the dollar value of compensation you are required to estimate how the Canadian price of poultry and the quantity of imported poultry will change as a result of this new trade agreement. Canada is a small importing country in the world market for poultry. Provided is the following information about the Canadian poultry market: 1.The world price of poultry is $5 2.The Canadian poultry market is currently (before new trade agreement) protected by a tariff rate quota (TRQ) of the following format: -an in-quota tariff is $1/unit -the import quota volume is 100 units -the over-quota tariff is $10/unit 3.An excess demand (ED) for imports function for poultry has been estimated as P = 28 - 0.14Q   a)Draw the diagram for imports in this market, and…

Caprica Corporation is a large conglomerate that has interests in various industries such as mining, oil refining, chemicals, and consumer goods. In the chemical industry, Caprica produces and sells Kalocin, a substance used in the production of most analgesic drugs. Caprica recently acquired the only firm that controls the extraction of a key raw material used to produce Kalocin. Jane Harris, an industry expert, expects the total surplus in the domestic market for Kalocin to fall following this acquisition. Her colleague, Brian Hall, disagrees. He feels that the acquisition will in fact increase efficiency in the market. Which of the following, if true, will most strengthen Jane's argument? O A. The net benefit accruing to Caprica will increase following the acquisition. ⒸB. Caprica's per-unit revenue before the acquisition was equal to the cost of producing an extra unit of Kalocin. O C. The demand for analgesic drugs is expected to increase in the coming year. O D. A Sri Lankan firm…

Due to fear about mad cow disease, Japan stopped importing animal feed from Britain in 1996, beef imports and processed beef products from 18 countries including EU members starting in 2001, and similar imports from Canada and the United States in 2003. After U.S. beef imports were banned, McDonald’s Japan and other Japanese importers replaced much of the banned U.S. beef with Australian beef, causing an export boom for Australia (“China Bans U.S. Beef,” cnn.com, December 24, 2003; “Beef Producers Are on the Lookout for Extra Demand,” abc.net.au, June 13, 2005). Use supply and demand curves to show the impact of these events on the domestic Australian beef market.  

In October 2018 Canada agree to open the dairy market to US producers as part of the new NAFTA agreement (USMCA). Use the following information to find the price and the number of firms in each country's market, and the price and number of firms in the aggregate market. Demand function For country i (i=USA or Canada) P, = 6000 + 25 Cost Function C, = 1,000, 000+ 6000 * Q, For country i (i=USA or Canada) Market size • Market size Canada Scananda = 1,000, 000 • Market size USA S,"S= 4,000, 000 The number of firms in Canada is equal to: Answer: Price in Canada is equal to: Answer: Number of firms in USA is equal to: Answer: Price in USA is equal to Answer: Number of firms in the integrated market is equal to: Answer:

You manage a company that competes in an industry that is comprised of 3 equal-sized firms that produce similar products. A recent industry report indicates that the market is fairly saturated, in that a 10 percent industry-wide price increase would lead to a 22 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 1 dollar. Based on this information, what price increase would you recommend if the tariff legislation is passed by Congress? Instructions: Enter your response rounded to the nearest penny (two decimal places).