{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

hw5 - Econ 4550/6550 International Trade Assignment 5 Due...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Econ 4550/6550 International Trade Assignment 5 Due on: Friday, October 23 Your answers must be typed. Graphs may be drawn by hand, if necessary. Please make a copy of your work before you submit it, since this assignment will not be returned before the second midterm exam. 1. Answer the following questions, using the figure below: (i) The figure above represents the demand and cost functions facing a Brazilian Steel producing monopolist. If it were unable to export, and was constrained by its domestic market, what quantity would it sell at what price? (ii) Now the monopolist discovers that it can export as much as it likes of its steel at the world price of $5/ton. How much steel will the monopolist sell, and at what price? (iii) Given the opportunity to sell at world prices, what is the marginal (opportunity) cost of selling a ton domestically? (iv) How much steel would the firm sell domestically, and at what price? (v) Is the Brazilian firm engaged in dumping? Is this predatory behavior on the part of the Brazilian steel
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern