Question

QUESTION 36

Table 4.2. Production Costs and Prices of Imported and Domestic TVs

Imported TVs		Domestic TVs
Component parts	$600	Imported component parts	$600
Assembly cost/profit	150	Assembly cost	150
Nominal tariff	50	Profit	50
Import price		Domestic price
after tariff	800	after tariff	800

Consider Table 4.2. Prior to the tariff, the total price of imported TVs is:

		$750
		$600
		$300
		$700

QUESTION 38

1. Table 4.1. 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

   Consider Table 4.1. Prior to the tariff, the total price of imported VCRs is:

   		$150
   		$200
   		$225
   		$235

Answer 1

1.Total price without tariff=Component parts+assembly cost

Total price=600+150=750

Answer-750

2.Total price of imported VCR before tariff=Component parts+assembly cost

Total price=150+50=200

Answer-200