Consider the Japanese market for jetliners as depicted in Figure 6.5. Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner, but now a European manufacturer, Airbus, begins production. Airbus faces the same marginal cost as Boeing, but the European government provides Airbus with a subsidy of $8 million per jetliner produced. As a result of the competition, Boeing leaves the Japanese market, leaving Airbus as a monopoly. As a result of the entry of the subsidized producer, what will happen to the consumer surplus gained by Japanese airlines from buying jetliners?
a. decrease by $109 million
b. nothing
c. increase by $50 million
d. increase by $109 million
c. increase by $50 million
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How should routine replies and positive replies close?
A) With a sincere apology for the trouble caused B) With an expression of appreciation or goodwill C) With a detailed explanation of the request D) With a mention of the consequences of non-compliance E) With information about the negative aspects of the request, if any
Permanent accounts include all of the following except:
A. Accumulated Depreciation-Equipment. B. Depreciation Expense-Equipment. C. Prepaid Insurance. D. Unearned Revenue. E. Accounts Receivable.
In the 21st century, challenges for the USIA include all EXCEPT ________
A) expanding the public relations role of the executive branch B) developing worldwide information programs to address environmental issues C) supporting the war on drugs in producer and consumer countries D) building intellectual and institutional foundations of democracy in societies around the globe