When Countries Create a Free Trade Area and Increase Market

question 39

Multiple Choice

When countries create a free trade area and increase market size, the schedule relating

• A)price to the number of firms in the market shifts to the left.
• B)average total cost to the number of firms in the market shifts to the left.
• C)average total cost to the number of firms in the market shifts to the right.
• D)price to the number of firms in the market shifts to the right.
• E)average total cost to the number of firms in the market remains constant.

---

Definitions:

Store Fixtures

Permanent or movable equipment and furniture in a retail store, designed to display merchandise effectively.

Equipment

Tangible property or assets used in the operation of a business to carry out specific tasks, excluding inventory or assets intended for sale.

Unearned Fees

Income received by a company for services yet to be provided; recognized as a liability until the service is performed.

Fees Earned

Income generated from providing services or performing work for clients or customers.