-The Above Figure Shows the Australian Market for 1 Carat

question 21

Multiple Choice

-The above figure shows the Australian market for 1 carat diamonds. With free trade, the price in Australia for diamonds is equal to ________ and, with the quota illustrated in the figure, the price in Australia is equal to ________.

• A) $2,000; $3,000
• B) $2,000; $2,000
• C) $4,000; $3,000
• D) $2,000; $4,000
• E) $4,000; $2,000

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Definitions:

Disclosure Requirements

These are legal or regulatory stipulations that mandate the release of financial and other significant information by a company to its stakeholders.

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business minus any costs of completion, transportation, and selling.

Estimated Selling Costs

Expenses projected to be incurred in the process of selling an asset, which may include legal fees, marketing, and commissions that reduce the total gains from the sale.