Refer to the Table Shown

question 100

Multiple Choice

Refer to the table shown. From this table we can conclude that if the two countries trade with each other, it is most likely that:

• A) France exports both goods to Germany.
• B) Germany exports both goods to France.
• C) France exports wine to Germany and imports electric generators from Germany.
• D) France exports electric generators to Germany and imports wine from Germany.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Marginal Cost

The cost of producing one more unit of a good or service, reflecting the increase in total cost that comes from increasing the level of production by one unit.

Maximize Profits

A business objective aiming to achieve the highest possible financial gain from operations.

Economic Profit

The surplus remaining after total costs (both explicit and implicit) are deducted from total revenue, reflecting the true profitability of a firm.