Question
Production Costs and Prices of Imported and Domestic VCRs Imported VCRs Domestic VCRs Component parts $150 Imported component parts $150 Assembly cost/profit 50 Assembly
Production Costs and Prices of Imported and Domestic VCRs
| Imported VCRs | Domestic VCRs | ||
| Component parts | $150 | Imported component parts | $150 |
| Assembly cost/profit | 50 | Assembly cost | 50 |
| Nominal tariff | 25 | Profit | 25 |
| ____ | ____ | ||
| Import price | Domestic price | ||
| after tariff | 225 | after tariff | 225 |
25. Consider Table 4.1. Prior to the tariff, domestic value added equals:
| a. | $25 |
| b. | $50 |
| c. | $75 |
| d. | $100 |
26. Consider Table 4.1. After the tariff, domestic value added equals:
| a. | $25 |
| b. | $50 |
| c. | $75 |
| d. | $100 |
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
