Summarize the article on measurements, Focus on the Logistics Service Capability Measurement System

Article: Research on Measurement of Service Capability of Logistics Enterprise

d) Canada is a “small” country in the global market for strawberries since its production or consumption levels do not affect world price. The world price for strawberries is $10 per box. If trade is allowed, calculate producer surplus, consumer surplus and total surplus for strawberries in Canada?

Q_D = 600 – 20P

Q_S = -150 + 30P

Suppose there are two paper mills on an island. Both mills produce air pollution that is non-rival and non-excludable. All of the island’s citizens are negatively affected by the air pollution, but Children and Adults are affected differently. Specifically, the marginal benefits of pollution abatement (A) to the Child population is given by MBChild = 162 − 3A and the marginal benefits of pollution abatement to the Adult population is given by MBAdult = 108−2A. Not surprisingly, pollution abatement is costly for both paper mills. For Mill 1, marginal abatement costs are given by MAC1 = 12A and for Mill 2, MAC2 = 6A. Suppose there are no enforcement costs associated with ensuring that polluters comply with any abatement regulations. Using this information, answer the following questions.

Part (a) Aggregating benefits for Children and Adults, what is the marginal social benefit (MSB) function for pollution abatement? Graphically illustrate marginal benefits for Children (labeling it MBC), Adults (labeling it MBA), and the two combined (labeling it MSB).

Part (b) Aggregating costs for Mill 1 and Mill 2, what is the marginal social cost (MSC) function for pollution abatement? Graphically illustrate marginal costs for Mill 1 (labeling it MAC1), Mill 2 (labeling it MAC2), and the two combined (labeling it MSC).

Part (c) In the absence of regulation and bargaining, how much pollution will each Mill choose to abate?

Part (d) What is the socially optimal level of pollution abatement? Show this graphically, making sure to label the MSB and MSC curves as well as all intercepts and the equilibrium.

Part (e) Suppose the government chooses to achieve the abatement goal you found in Part (d) using a flat-rate emissions tax. What emissions tax would induce an overall abatement level that would achieve this goal? Under this tax, how many units of pollution would Mill 1 choose to abate? How many units of pollution would Mill 2 choose to abate?

Part (f) Suppose instead that the government chooses to achieve the abatement goal you found in Part (d) using a flat-rate emissions subsidy. What emissions subsidy would induce an overall abatement level that would achieve this goal? Under this subsidy, how many units of pollution would Mill 1 choose to abate? How many units of pollution would Mill 2 choose to abate?

Part (g) Without doing the calculation, can you tell whether total market abatement costs under the tax will be lower than, equal to, or greater than total market abatement costs under the subsidy?

Part (h) Suppose it is discovered that pollution abatement is actually much more beneficial to children than we originally thought above. Suppose also that there are actually positive and sizable costs to enforcing pollution abatement regulations. Applying this new information, what can you say about the new socially optimal level of pollution relative to the level you found in Part (d)?

What are the basic challenges facing global companies, particularly in developing markets? How can small business address them?

What types of support are available to entrepreneurial ventures for global expansion to developing countries?

Principles List #2

1.Verbally and Graphically describe the CONSUMER SURPLUS captured by the buyers of a product

2. Verbally and Graphically describe the PRODCUER SURPLUS captured by the seller of a product

3. Verbally and graphically describe the ONE economic condition necessary for firms in an economy to sell a

part of the product they produce to buyers in foreign economies (Exporting)

4. Verbally and graphically describe the ONE economic condition for necessary for buyers in an economy to

buy a part of the quantity they buy from sellers that produce the product in foreign economies (Importing)

5. Verbally and graphically describe a domestic market for some product in an equilibrium state as a NET

IMPORTER of a product and indicate the gains to the domestic buyers and the losses to the domestic sellers

6. Verbally and graphically describe the consequences of the Government restricting the quantity of a product

that can be imported by passing import tariffs or import quotas

4. For each of the following, state if the reaction is Elastic? Inelastic? Unitary elastic? Perfectly elastic? Perfectly inelastic? Support your answer as instructed.

a. An international student was quoted as saying,” I would give up none of my units if they raise tuition by another 15%”; his unemployed American classmate felt he would give up 10% of them, however. Reaction is _____________________ Support with calculation or explanation . .

b) A couple of years ago I received this email from a GCC instructor (this really happened!) “Hi Caroline, I just got back from the little store on Campus ...... I was shocked that they charged me $2.50 for a 20 oz, Coke. Gas at a high price I understand, but Cola??? Wow!. Never! As a result, the demand curve of this colleague is best described as being __________________ - why? Explain/ show with a graph.

c). It was reported in Feb 2016 that Uber is cutting the fares in New York which is angering its drivers. The reason Uber gave: “In NY things tend to be quieter after the holiday. So we lowered the prices to get more people to use Uber. One driver complained, however, that the amount of money he earned did not change. Reaction of customers is ( elastic; inelastic; unitary elastic) _________________ Use total revenue to explain graphically.

2 a) The Wall Street Journal reported in January 2018 that the makers of many household goods have increased the price of household/personal care products by 2.9% from prices in the previous year. If the elasticity of demand were 0.48, then we can predict that the quantity of household products should have ______ ( increased ;decreased ) by _________. Show calculation/method here:

b). For this question, write the correct elasticity measure below the product you think it matches best then give your reason for one of the matches only Ed = -3.6 -1.4 -0.8 Airline travel; pet food; Delta airlines

(c)Tue or False? The government wants to raise tariffs on foreign cars that are gas guzzlers to discourage people from buying them because they are bad for the environment Then such cars are considered inferior. ______ explain briefly

d) In 2017 price elasticity was estimated for the good below, Do you think the elasticity number today would be higher? lower? The same? Why? Give two reasons Electric car: - 0.61

1. ___________________________________

2. ___________________________________

3. ___________________________________

e). An article in the Journal of New York State Economic Association claims that the income elasticity of demand for public college education in New York is + 2.16 .Who would find this information useful and most importantly WHY? Come up with 3 or more interested parties- keep in mind students are not one of them because they are the ones reacting. You MUST give a brief explanation for each to make connection clear.

a).

b).

c).

(BusinessWeek Bloomberg). Chinese purchased 9.315 million locally made small passenger cars in 2009 when the price of the average car (Chinese Yuan) was the dollar equivalent of $17,700. Since then, car sales outlets have been slashing prices. In August 2010 Chinese purchased 13.6 million cars at average prices of Yuan equivalents of $16,250. Based on the calculations shown the price elasticity of demand for cars in China is ____________ (elastic ; inelastic) . When commenting on market outcomes an analyst in Beijing would have made this statement ,” automakers and dealers in China are expected to be ____________ ( worse off ; better off .) To confirm show method and calculations for the Ed.

Let c(y1, y2) = y1 + y2 + (y1y2)^ −(1/3). Does this cost function have economies of scale for y1? What about economies of scope for any strictly positive y1 and y2. Hint, economies of scope exist if for a positive set of y1 and y2, c(y1, y2) < c(y1, 0) + c(0, y2). [Hint: Be very careful to handle the case of y2 = 0 separately.]