Discuss the costs and benefits of collective action with regards to trade legislation. Why is it that trade restrictions are so prevalent when it is so easy to prove their negative impact on general welfare? (25 points)

Welfare economics looks at winners and losers through changes in consumer and producer surpluses. When the U.S. imposed tariffs on steel imports my relatives from the Iron Range of Minnesota were happy about the tariffs. My husband's employer manufactures potato harvesting equipment. They are facing higher steel costs as a result of the tariffs. Using a welfare economics explain in economic terms, the reason some businesses liking the tariffs and other businesses not liking the tariffs. What is the overall impact of the steel tariff when you look at both the winners and losers?

1. The government is thinking about a tax on potash of $00 per kg. The government knows that the elasticity of demand for potash is ε= -0.50, while the elasticity of supply is η=5. The current market equilibrium quantity is 10,000,000 kg, while the current equilibrium price that consumers pay is $5.00 per kg. Suppose that the tax is assessed on producers who collect the tax for the government.
   1. What is the statutory incidence of the tax? (You must show your work)
2. 2. What will be the economic incidence of the tax? (You must show your work)
3. 3. What will be the after-tax price that consumers pay? (You must show your work)
4. 4. What will be the after-tax quantity that consumers buy? (You must show your work
5. 5. What will be the after-tax price that producers receive? (You must show your work)
6. 6. How much revenue will be generated by the tax? (You must show your work)
7. 7. What will be the dead-weight loss from the tax? (You must show your work)
8. 8. What will be the efficiency-loss ratio? (You must show your work)

In 2015 Qualcomm, Inc., an American multinational semiconductor company, came under scrutiny for its business practices by the United States and the European Union. It was argued that Qualcomm was paying a major customer to exclusively use its chips. In addition, Qualcomm was accused of selling its chips below cost in order to drive one of its competitors, Icera Inc., out of the market. Based on what you have learned in this chapter, which of the following behaviors is Qualcomm engaging in, and if proven to have occurred, could be at odds with U.S. antitrust law? Instructions: select all statements that are true

Qualcomm was engaged in limit pricing

Qualcomm was foreclosing the chip market.

Qualcomm was engaged in predatory pricing.

Qualcomm was utilizing a first-mover advantage.

Select the correct economic criterion (maximize profit, minimize cost, maximize benefit) for each of the following scenarios:
A services contractor received a fixed price contract to install and maintain IT equipment for the city of San Diego. What is the economic criteria for the services contractor?
A couple has budgeted $15,000 for their wedding. What is the economic criterion for the couple planning their wedding?
A sandwich shop has found that decreasing the price of a sandwich increases sales but at a decreasing rate as price drops. What is the economic criteria for the sandwich shop?

Why is step 9 of the decision making process, audit the results, important? Why do you think firms often ignore this step?

Question 2 a) Differentiate the following function y = 2x3 - 6x-2 - 4x + 10    b) You invest a K1000 once is a savings account offering 8 interest per annum for 5years. If the interest is compounded, how much would be the value after 5 years. c) If a business currently sells 10,000 units of its product per month at $10 per unit and the demand for its product has a price elasticity of -2.5, a rise in the price of the product to $11 will: d) Write brief notes on each of the following; I. Compensatory Theory of Economic Profits (2) Producer-Producer rivalry (3) Consumers surplus .

Cee Mimi is a Canadian owned women’s swimwear brand with the objective of supplying consumers with sustainable, trendy and affordable pieces. It is exporting from Singapore and imported to Indonesia. Cee Mimi aims to encourage international trade by sourcing raw fabrics and textiles internationally. Indonesia is one of Singapore’s top five trading partners, with Indonesia accounting for over $27.4 billion dollars, around 7% of Singapore's total exports (Workman, 2020).

I need you to construct one PESTLE analysis that accounts for both countries.

These are the instructions below.

Conduct a PESTLE analysis:

1. Things to consider here: What special challenges pertain to the export markets? Consider what your competition might be in the Export country.

2. Consider their exchange rates inflation rate and other financial information that will affect the sales and pricing of your goods.

Are the Ireader good substitutes for paper books?

Suppose two seemingly similar goods or services with significantly different prices. Discuss a minimum of three different possible explanations of why those price differences might exist. Be specific about your assumptions. Be clear in why those goods or services have different prices and whether or not those price differences might disappear over time. Give examples of two goods that might fit each of your explanations. What generalizations about how prices relate to one another can you make? Focus on the economic concepts and focus on the first part of the question, then briefly mention the examples.

Phoenix Electricity is the only company providing electricity in City H.

a. What kind of market structure should be used to analyze Phoenix Electricity’s production decision?

b. Suppose Phoenix Electricity relies heavily on natural gas but there is a drastic increase in the price of natural gas recently. How does this affect the output and price of Phoenix Electricity? Show the results with the aid of a diagram. (For the sake of simplicity, do NOT draw the AC curve in your answers.)

c. Will Phoenix Electricity earn a larger or a smaller amount of profit? Use words only to explain your answer.

There are 1000 potential travellers each day on the Cop

enhagen

-

Oslo route, of which 500 are yuppies and 500 are hippies. Yuppies are willing to pay 700.00 for an unrestricted ticket

and 400.00 for a restricted ticket. Hippies are willing to pay 500.00 for an unrestricted ticket

and 300.00 for a restricted ticket. Travellers buy the ticket that gives them the highest

surplus (equal to the difference between the willingness to pay and the price), provided that

this surplus is positive. Among the following price policies, which one results in the highest

revenues?

a)

700.00 for an unrestricted ticket and 300.00 for

a restricted ticket.

b)

699

.00 for an unrestricted ticket and 299.00 for a restricted ticket.

c)

598.00 for an unrestricted ticket and 299.00 for a restricted ticket.

d)

498.00 for an unrestricted ticket and 199.00 for a restricted ticket.

Q. Suppose the Fed lowers the interest rate paid on reserves. Draw the money supply / money demand graph, starting from the initial equilibrium, then show clearly the impact on the real interest rate and the quantity of money. Use good labels.