-Refer to the Diagram Above,where S and D Are the Domestic

question 109

Multiple Choice

-Refer to the diagram above,where S and D are the domestic supply and demand curves for a product.The world price of the product is $6.The total revenue that would go to domestic producers would be ________ if this market were closed to international trade,but only ________ if the domestic market were open to international trade.

• A) $600;$240
• B) $600;$120
• C) $500;$240
• D) $240;$120
• E) $400;$220

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in a faster depreciation of assets in the early years of their life.

Depreciation Expense

The organized allocation of a tangible asset's expenditure over its life of usefulness.

Straight-Line Method

A method of depreciation that allocates an equal amount of the asset's cost to each accounting period over its useful life.

Depreciation Expense

Apportioning the cost of a concrete asset over its duration of use.