Wednesday
April 16, 2014

Homework Help: economics. urgent

Posted by gosh on Wednesday, September 3, 2008 at 3:31am.

Assuming that shoes have a world price of US$60 a pair, that the EU has a 45%
ad valorem import duty on footwear which applies to all types of footwear and
an Italian company is proposing a project to substitute 150,000 pairs of
imported shoes by domestically produced shoes. The annual cost of the project
(operating cost plus annual equivalent capital cost) at both market and
efficiency prices are $9.4 millions. Apart from the tariff there are no other
distortions to the EU domestic price of shoes. Calculate the net annual benefit
of the project:
a. At market prices. [2 marks]
b. At efficiency prices. [2 marks]

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

economic - ASSIGNMENT 5: DUE 4.00PM, 4/09/08 1. A competitive firm uses coal to ...
Economics~~URGENT!!! - i am not a spoon feeder, i just dont have any idea about ...
Economic - Cost and benefit analysis - i am not a spoon feeder, i just dont have...
Economics - Consider a country that initially consumes 100 pairs of shoes per ...
Algebra - A big sale is happening today at the Newton Shoe Store. You buy two ...
math - jeff bought 6 pairs of shoes and 4 jerseys for 560. Jersies cost 1/4 ...
percent - sammy bought a pair of shoes with 30% off sale price was 58.45 what ...
Math - Shoes are on sale, buy one and get the cheaper pair 50% off. Jane and ...
algebra - Natasha has been saving money to buy a new pair of running shoes. The ...
math - A men's shoe store uses a markup rate of 115% on its most popular brands ...

Search
Members