Price, output, total profit

I have already completed the problem but need to make sure that my answers are correct. 1. Consider the attached graph. Suppose that Sony Company and American Company jointly form a new firm, Venture Company, whose ball bearings replace the output sold by the parents in the domestic market. Assuming that Venture Company operates as a monopoly and that its costs equal MC0=AC0, what would be the firm's price, output, and total profit ? 2. Consider the attached graph. Assume Venture Company's formation yields new cost reductions, indicated by MC1=AC1, which result from technological advances. Realizing that Venture Company results in a deadweight loss of consumer surplus, what is the ne... click for more

Labor market equilibrium

Consider the attached graph. 1. At labor market equilibrium, _______ workers are hired at a wage rate of $_______ per hour, while total wages equal $_______. 2. At labor market equilibrium, how much is the payment to U.S. capital owners? 3. If Mexican migration to the United States results in the labor force increasing to 3 workers, denoted by schedule S1, what is the effect (increase? Or decrease?) on the wage rate for native U.S. workers and the payments to U.S. capital owners? Explain your reasoning.

International Trade Relations

Does free trade harm the environment? Environmentalists argue that trade liberalization harms the environment. The decisions of the World Trade Organization (WTO) in particular have been the subject of much criticism. Carbaugh1 has described environmentalists' three primary assertions: Trade liberalization leads to a "race to the bottom" in environmental standards. Trade liberalization conflicts with morally-conscious environmental policies. Trade liberalization encourages trade in products that create global pollution ("pollution havens"). Proponents of trade liberalization argue that freer trade might actually improve the quality of the environment. For example, the ... click for more

Intl Trade Question

Describes a simple Ricardian problem about comparative advantage

US multinational and currency denomination for offshore operations

Select a U.S. multinational company. In terms of currency denomination, Discuss how the firm prices its revenues and costs. For MNE's ( MULTINATIONAL ENTERPRISES) with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information what do you think would be the effect of Increases/decreases in the dollar's exchange value on the firm's profitability? Carbaugh, Robert J. International Economics, 10th edition. Mason, Ohio: Thomson/South-Western. 2005.