1: Tariffs encourage Americans to buy U.S.-made products. (Points: 13) I find this position to be valid. Tariffs are basically taxes on imports, thus making imported goods more expensive to buy (Nickels, McHugh & McHugh, 2008, p. 75). Protective tariffs are designed to raise the retail price of imported products so that domestic goods are more competitively priced (Nickels, McHugh & McHugh, 2008, p. 76). Therefore, if when a consumer enters a store and sees similarly priced products, one imported and one made domestically, they can choose a US made product without feeling as if they are overpaying for the same product.
This is higher than the social equilibrium, Qs, meaning there has been a welfare loss to society of (shade triangle). Government fix this by imposing an indirect tax on producers, which effectively raises their costs of production, shifting their supply curve inwards. If they have set the tax at the right level, this internalises the externality and the new private cost curve looks exactly Discuss Whether Indirect Taxes on Petrol and Diesel Fuel in the UK should be reduced like the social cost curve, and the market “chooses” to consume Qs after the tax. This is shown as level Q2 on the diagram to the right. Importantly, as a result of the tax, the welfare loss triangle has disappeared.
The customer may have bought it straight from the business or the producer of the product per through the retailer or the wholesaler. This specific way of purchasing is called channels. It is sensible to use more than one route of channels, this is so that the customers is able to make choice of which way they wish to purchase the product * Manufacture- produces goods and sells them. They also have a big factory where they turn raw material into finished goods. * Retailers- There may be owned by the manufactured or independent of the manufactured.
A type A merger would increase market power which would increase market share. Increase in market share would increase profitability. A merger is also recommended because with Smithon’s positive income can offset with Johnson’s negative income and would result in reduced tax liabilities. A merger redefines the business world which allows for improve corporate business strategies and philosophies along with stronger alliances and less competition. There are many reasons for a merger but the most important is to maximize its profits.
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
For the recommended price point that it is suggested as $3.29 wholesale for a 6-pack or $5.82 wholesale for a gallon (Study I). Consumer and Retailer studies conducted by Manson and Associates show that Coors is viewed at a slightly higher price point than Mr. Barlow’s main competitors, Budweiser, Miller, and Miller Light (Studies G & H). Our team suggest that the price be on par with those competitors to raise the number of consumers who are willing to try Coors. As shown by Manson and Associates’ Study
Activity based costing furthers the effort of correctly assigning costs to our products. Using multiple cost pools and finding out their cost drivers we can more accurately price our products. This will help us to determine why our competitors can sell the pumps so cheaply and why our 12 ½ % increase in the price of the flow controllers did not meet with a decrease in demand. Below is a chart of the proposed activity based costing system. It includes the indirect cost pools, the cost-allocation base, the cost objects (our products), and the direct costs: Engineering $100,000 Maintenance $30,000 Depreciation $270,000 Packaging/ Shipping $60,000 Receiving and handling $220,000 Exhibit 1 30 Transactions 10,800 Machine Hours 10,800 Machine Hours 129 Transactions each 100% work orders $1,705.43 per 20% valves $2.78 per hour $25 per hour $2,000 per Transaction 30% pumps transaction 50% flow controllers Indirect Costs Direct Costs Set-up Labor Direct Labor Direct Materials Exhibit 1 shows the different cost pools, the direct costs, and their cost drivers.
• A differentiator gains a competitive advantage because it has the ability to satisfy customers’ needs in a way that its competitors cannot, which allows it to charge a premium price for its product. • Premium prices → increased revenue → superior profitability • A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality, and responsiveness to customer needs • A product’s appeal to customers’ psychological desires is a source of differentiation. ▫ Example? 13 Differentiation • Generally, a differentiator chooses to divide its market into many segments and offer different products in each segment • A differentiated company concentrates on developing distinctive competencies in the functions that provide competitive advantage ▫ These are still expensive! • A differentiator must control its cost structure to ensure the price of its products does not exceed the price customers are willing to pay for them • When differentiation stems from the design or physical features of the product, differentiators are at great risk of being imitated ▫ Example?
“The most important provision of this act however is the prevention of anticompetitive mergers. This occurs when a company buys a competing firm. While most mergers allow the companies to create better quality goods at less expensive prices, some mergers limit competition and make price fixing easier. This part of the act was designed to prevent mergers from creating monopolies” (Ellsworth, 4). This section of the Clayton act wanted to promote free trade and keep smaller businesses from getting too greedy.
International trade can affect domestic producers in both a positive and negative way. In the positive sense, domestic producers can specialize in producing goods and may be able to produce with an absolute advantage or comparative advantage. Negatively, the country that is exporting goods to the U.S may have the advantage therefore selling the product for less in turn hurting the domestic producer. The domestic consumer benefits from international trade because they get the good for a better price unless a tariff or quota is imposed. If this is the case then less of that good is imported to the U.S. which keeps the prices higher which would negatively impact the domestic