6. A Canadian company can produce a mattress using $160 worth of raw materials and S120 worth of labour, and shipping co

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6 A Canadian Company Can Produce A Mattress Using 160 Worth Of Raw Materials And S120 Worth Of Labour And Shipping Co 1 (30.92 KiB) Viewed 39 times

6. A Canadian company can produce a mattress using $160 worth of raw materials and S120 worth of labour, and shipping costs will be $27. A Chinese company can produce the mattress using $160 of raw materials and $40 for labour, with $50 for shipping. Assume that the Canadian tariff for mattresses is 50%. The Canadian retailer has a markup of 150%. a) Calculate the price of the Canadian mattress and compare it with the price of the Chinese mattress before and after the tariff. (A: 2 points) b) Considering the different factors involved in these options (e.g., the final price to the consumer, the profits for the retailer, domestic versus foreign production, tariffs, etc.), which do you think is the better scenario, and why? (A: 8 points)