Price elasticity of demand and transportation costs

When the price elasticity of demand for Japanese cars is higher within Europe than into the U.S. and transportation costs are very similar, relative to the price charged in Europe, there the price a discriminating Japanese carmaker would American buyers would be as: (w) a lower. (x) a higher. (y) the same. (z) a less profitable

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Demands of prosperous American families

The demands of prosperous American families are most likely most income elastic for their: (i) vacations in Hawaii. (ii) higher education. (iii) cell phones. (iv) fast food meals. (v) gasoline. Ple

Q : Maximum possible profitable firm A firm

A firm possessing important market power may suffer by managerial slack [X-inefficiency] and unessential high costs, which implies that, the firm: (i) is likely to be absorbed through a predatory rival. (ii) realizes less than the max

Q : Price and output combination by demand

Not like a purely competitive firm, here a profit-maximizing monopolist can: (w) charge any price it finds advantageous and be assured of selling all this produces. (x) select a price and output combination by a downward-sloping demand curve. (y) spen

Q : Income-Satisfaction boundaries Demand

The maximum amounts of a good that people are willing and capable to buy at different market prices during a specific period are depicted by: (1) Horizontal summations. (2) Income or satisfaction boundaries. (3) Demand curves. (4) Consumption possibilities frontiers.<

Q : LEAST affected labor in short run The

The short-run demand for labor would be LEAST affected by the: (w) productivity of the resource. (x) prices of substitute resources. (y) demand for goods produced by the resource. (z) fixed costs of a firm. Hey fri

Q : Law of Supply Law of Supply : Supply

Law of Supply: Supply means the goods provided for sale at a price throughout a particular period of time. This is the capacity and intention of the producers to gen

Q : Objective of Price Controls Price

Price controls are intended to: (w) eliminate arbitrage and speculation. (x) stabilize prices. (y) make sure laissez-faire policies. (z) ignore shortages and surpluses. How can I solve my economics problem? Please

Q : Words of Economic Rent about David

David Ricardo: (w) was the originator of the theory of pure economic rent onto land. (x) believed that land rent was earned since land would not be available at a zero price. (y) observed that marginal land which is just barely helpful commands positi

Q : Total variable costs in monopolistic

When this firm produces 5,000 units of output monthly in this demonstrated figure, in that case its total variable costs equal as: (w) $75,000 per month. (x) $15,000 per month. (y) $18,000 per month. (z) $3,000 per month.

Q : Monopolistic competitor in market When

When this monopolistic competitor makes Q units: (1) P > MC. (2) MR = MC. (3) total revenue total cost is maximized. (4) MSB > MSC. (5) All of the above.

Discover Q & A

Leading Solution Library

Avail More Than 1447912 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1944765
Asked

3,689

Active Tutors

1447912

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment