The Comparative Advantage for Editing - Assignment Example

Andrew brings a comparative advantage to the company over Chris since he can produce more edited ads. At the same time, in terms of the clients getting updated information, Andrew still brings in a comparative advantage over Chris.

2. (a) The lower-tie data packages increased by $5 per month. At the same time, the higher-tier data packages increased by $ 5. However, the percentage increase was not the same for the two groups. In this case, the increase for the lower-tie was 33% while for the higher-tier plan was 30%.
a. By increasing the price in the higher-tier plan, the demand will go down.

b. For the AT&T tablets, the low-tier plan will be in such a way that for every extra 300 MB, the overage fee that will be charged will be $ 20. The clients will also, through the lower-tier plan be able to get an extra one hour for streaming video or extra 300 posts on social media. This is due to the extra megabytes.
c. AT&T is executing this move to offset the coming plans of Apple for launching the iPad 3, which according to analysts could lure many customers and dominate the market. Therefore, the action is meant to expand its market base before Apple comes in to take over.
d. The reason behind the increase in demand. This is because we can see that the company is trying to make sure that the customers get more time for video streaming and accessing social sites. The factor responsible for the increase in demand is the increase in the product’s quality.

e. They are the same since both of them have raised their prices.
f. four sellers are existing in the market.
g. The number is enough to make the market perfectly competitive since by one seller setting prices higher, it will lose customers.
h. There is no substitute for these products? This is because the products being sold by the
3. The demand and supply for GPS units in a certain country are given by:

Q = 55,400 – 28 P

Q = 32,500 + 43 P

a. P=322.54
Q= 46369.
b. Q demanded will be 59823 while the quantity supplied will be 46369
c. Due to the government control price there will be excess demand. The excess will be 13454.
d.
4.
a. €489 billion. It settled their nerves by giving them something that they could use for investment.
b. The growth of the German economy was 3% while the unemployment rate was 6.8%.
c. It was flat.
d. Italy
e. The investors will shy away from a country with a weaker safety net.
f. Greece is the biggest danger. The bank run has continued in slow motion.
g. Yes. Sweden.
h. The exporters from the west and south are enjoying the fall of the euro against the dollar. Read More