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October 21, 2014

October 21, 2014

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

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]

- economics. urgent -
**GuruBlue**, Wednesday, September 3, 2008 at 8:57amAfter you have done the work on this, please repost. One of the teachers will be happy to make suggestions/corrections to your ideas.

- economics. urgent -
**zhuie**, Wednesday, September 3, 2008 at 9:58amjust noticed that u are doing the same question as me...and im looking for the assistance too^^

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