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The Table Below Shows the Prices in Canada of One

question 87

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The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical.  Producing Country  Canadian Price in $ C anadian Price in $ Free Trade 40% Import Tariff  Canada 10.00 United Kingdom 9.00 United States 8.00\begin{array} { | l | c | c | } \hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \\\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \\\hline \text { Canada } & 10.00 & \\\hline \text { United Kingdom } & 9.00 & \\\hline \text { United States } & 8.00 & \\\hline\end{array} TABLE 34- 1
-Refer to Table 34- 1.Assuming that a 40% tariff is in place and that Canadians buy only the lowest- priced cheddar cheese,from which country will Canada buy its cheese?

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Definitions:

Production Capacity

The maximum amount of goods or services that a manufacturing facility can produce over a given period under normal conditions.

External Financing

Funds raised from outside the company, typically through borrowing or selling equity.

Dividend Payout

Dividend payout refers to the portion of a company's earnings distributed to shareholders as dividends.

Profit Margin

A financial metric used to assess a company's profitability by calculating the percentage of revenue that exceeds the costs of goods sold.

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