Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 15, Problem 4IP
To determine

The way in which the US economy would differ today if Standard Oil has not been broken up.

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CITGO, the petroleum company owned by the Venezuelan government, sells its products throughout the world. Do you anticipate that its market positioning and advertising differ in different countries? Why or why not?
Volkswagen sells cars in many countries throughout the world, including Mexico and other Latin American countries. How would you expect its market position to differ in those countries compared with that in the United States?
Two car manufacturers, Nissa and Honda, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Nissan produces 500,000 cars per year and Honda produces 200,000 cars per year, calculate the average production cost for each company.Average production cost for Nissan: $ .Average production cost for Honda: $ .On the basis of these costs, which company's market share do you think will grow in relative terms? Honda or Nissan?
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