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 : Effect of national income on Normal

A possible demonstration for economy-wide rises in demands for such goods as latest cars and clothes would be that: (1) National income has risen. (2) The economy is fall into recession. (3) The prices of the goods go up. (4) Prices were cut for the c

Q : Price discriminate by monopoly firms

Monopoly firms which can’t price discriminate: (a) are generally forced to shut down into the long run. (b) find this impossible to bar entry by new competitors within the long run. (c) by producing maximize profit where average

Q : Maximize profit by marginal revenue and

Prohibition Corporation’s very famous St. Valentine’s Day software is going within version 6. The very first point Prohibition requires to classify in its quest to maximize profit is the: (1) point e. (2) point f. (3) point g. (4) point h.

Q : Long run adjustments The resources of a

The resources of a firm in the long run which has consistently suffered economic losses are probably to: (i) move into a more profitable industry. (ii) share losses equal to the firm’s fixed costs. (iii) be merged into a firm along with better m

Q : Traditional transfer in kind assistance

Most traditional transfer in kind helps programs: (w) increased benefits for every dollar earned. (x) reduced benefits by $1 for every dollar earned. (y) reduced benefits by less than $1 for each dollar earned. (z) reduced benefits by more than $1 for

Q : Typical production possibilities curve

Evaluate which one is not correct? A typical production possibilities curve: A) indicates how much of two products a society can produce. B) reveals how much each additional unit of one product will cost in terms of the other product. C) specifies how much of each pro

Discover Q & A

Leading Solution Library

Avail More Than 1437518 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1924943
Asked

3,689

Active Tutors

1437518

Questions
Answered

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

Submit Assignment