Managerial Economics

It is early April, 2021. You and your colleagues in Capitol Hill are busy discussing the $2.3 trillion infrastructure proposal. And you are tasked as the bipartisan leader to support the American semiconductor industry as part of the package.

Mr. Biden's mentioned that the $2.3 trillion infrastructure proposal would include $50 billion for the American semiconductor industry. According to the Wall Street Journal report, the president said semiconductors, along with matters like expanding broadband, are critical for infrastructure.

1. Illustrated applicable theories from the 10 Principles of Economics.

2. Explain how the $50 billion for the American semiconductor industry could potentially impact the market through supply and demand.

3. What type of market are American semiconductor firms facing, and why.

4. Potential impacts to the GDP of the states.