Examlex

Solved

The USIs Planning on Imposing Quotas on Tires Imported from China

question 140

Essay

The U.S.is planning on imposing quotas on tires imported from china.Domestic retailers predict this will result in an increase in consumer prices on tires by about $10.Use a supply and demand graph with brief explanation to show the effects of an import quota.Assume the quota is binding.


Definitions:

Split-off Point

The stage in a process at which various products become separately identifiable and their costs can be separately assigned.

Joint Products

Two or more products that are produced from a common input.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Opportunity Costs

The benefits a person or business foregoes by choosing one alternative over another.

Related Questions