Below are several questions about the Monopolistic Competition Model in the context of a trade liberalization between the US and Mexico. Some information about the widget industry in the US and Mexico: Both countries share the same technological characteristics with consultants from Bain & Company reporting that the fixed cost associated with producing a widget are 75,000$, the variable costs associated with producing a widget are 5$.Bain also reports demand characteristics of the US and Mexico market: The demand elasticity parameter "b" was estimated to be 1/300. Total widget demand in the US was estimated to be 16,000 units and total widget demand in Mexico was estimated to be 9,000 units.
Suppose the US market is segmented from the Mexico market (i. e. there is no trade between markets), how many firms operate in the US market? How many firms operate in Mexico? At what prices do they sell their products? How does the US market compare to the Mexican market?

Which of the following are considered needs? check all that apply

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?