Segway Corporation has a monopoly on its personal transporter, which is a scooter that carries one person. The company achieved its monopoly through the procurement of a patent. In spite of this advantage it has yet to turn a profit
One major impediment for the product is the existence of local ordinance around the country that prohibits the use of motorized scooters on sidewalks where the Segway might otherwise provide great utility to users. Where do you believe the demand curve is in relation to the average total cost? What do you believe the company's executives are banking on since they continue to stay in business even in the face of losses?
The demand curve clearly lies everywhere below the average total cost curve. The company's executives are probably banking on pushing the demand curve upward through advertising and marketing. They should probably be spending lobbying effort to convince local authorities to amend their ordinances. This could help with demand as well.
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When the exchange rate moves from $1 = CAD1.5 to $1 = CAD1.66, it implies:
a. the U.S. dollar has depreciated in relation to the Canadian dollar. b. U.S. imports of Canadian goods will rise. c. the dollar price of the Canadian dollar has risen. d. the Canadian dollar has appreciated in relation to the U.S. dollar. e. Canadian imports of U.S. goods will rise.
Define the four basic types of trade barriers.
What will be an ideal response?