Business, 06.04.2020 22:38, tydariousgamer
Warsteiner, a German brewery, is thinking about expanding its operations to export its beer to Cuba. Assume that Warsteiner has the following costs and demand information: Fixed cost = €319 Marginal cost = €5 per case of beer Local price = €23 per case Local quantity = 1755 Export price = €10 Export quantity = 10
a. Calculate Warsteiner's profit (in €) from selling only in the local market. Round your answer to two decimal places.
b) Calculate the firm’s profit from selling to BOTH markets.
c) Should Warsteiner enter the Cuban market? Briefly explain why.
d) Using the DOC’s first method of determining fair market value (using the home price of the product), what is the dumping margin if Warsteiner decides to enter the Cuban market?
Answers: 2
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Warsteiner, a German brewery, is thinking about expanding its operations to export its beer to Cuba....
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