The table below shows the prices in Canada of one kilogram of cheddar cheese from 3 different countries. Assume that all cheddar cheese is identical. 
TABLE 34- 1
-Refer to Table 34- 1. Suppose Canada and the United Kingdom negotiate a free- trade agreement in cheese. But Canada has a 40 percent tariff on cheese imported from other countries. From which country will Canada now buy its cheese?
Definitions:
Fixed Costs
Fixed costs are business expenses that do not change regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.
Total Revenue
The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.
Mass Customization
A manufacturing approach that allows for the personalization of products to meet individual customer needs at near mass production prices.
Institutional Buyers
Large organizations such as mutual funds, pension funds, and insurance companies that buy or sell large quantities of securities or goods.
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