-The Above Figure Shows the Australian Market for Replacement Mobile

question 63

Multiple Choice

-The above figure shows the Australian market for replacement mobile phone batteries. When there is no international trade, the equilibrium price is ________ per battery and when there is international trade the equilibrium price is ________ per battery.

• A) $16; $12
• B) $12; $14
• C) $12; $16
• D) $16; $14
• E) $14; $12

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Definitions:

Marginal Costs

The additional cost incurred by producing one extra unit of a product or service, crucial for understanding economic efficiency and pricing.

Variable Costs

Expenses that vary directly with the level of production or output.

Long-Run Average Total Cost

The average cost per unit of output where all inputs are considered variable, calculated over a period where firms can adjust all factors of production.

Short-Run Marginal Cost

The cost incurred by producing one additional unit of a product or service in the short run, where some factors are fixed.