The Following Table Is Domestic Supply and Demand Schedules for a Product.Suppose

question 176

Multiple Choice

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Refer to the above data.The total amount of revenue collected from a $1 per unit tariff on this product will be:

• A)$22
• B)$8
• C)$7
• D)$14

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Definitions:

Internal Rate of Return (IRR)

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Net Present Value (NPV)

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Capital Cost Allowance (CCA)

A yearly deduction or depreciation on the cost of certain assets that can be claimed for tax purposes in Canada.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investment activities.