Scenario 9-2 • for a Small Country Called Boxland,the Equation of the of the Domestic

question 237

Multiple Choice

Scenario 9-2
• For a small country called Boxland,the equation of the domestic demand curve for
cardboard is ,
where represents the domestic quantity of cardboard demanded,in tons,and represents the price of a ton of cardboard.
• For Boxland,the equation of the domestic supply curve for cardboard is ,
where represents the domestic quantity of cardboard supplied,in tons,and again
represents the price of a ton of cardboard.
-Refer to Scenario 9-2.Suppose the world price of cardboard is $45.Then,relative to the no-trade situation,international trade in cardboard

• A)benefits Boxlandian consumers by $721 and harms Boxlandian producers by $525.00.
• B)benefits Boxlandian consumers by $721 and harms Boxlandian producers by $598.50.
• C)benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.
• D)harms Boxlandian consumers by $336 and harms Boxlandian producers by $525.00.

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Definitions:

Average Total Assets

Average total assets are calculated by taking the sum of total assets at the beginning and end of an accounting period, then dividing by two, used for analyzing a company's asset efficiency.

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Units-Of-Production Method

A depreciation method that allocates an asset's cost based on the number of units it produces, linking the depreciation expense to the actual usage of the asset.

Useful Life

The estimated duration of time that an asset is expected to be functional and contribute to a company's operations, used for depreciation calculations.