Exhibit 33-8 ​

question 109

Multiple Choice

Exhibit 33-8
​

-Refer to Exhibit 33-8. Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports) . The government collects tariff revenues on sugar imports in the amount of __________ million.

• A)$500
• B)$1,000
• C)$1,500
• D)$2,000
• E)none of the above

Recognize the relationship between market price and firm's production decisions.

Understand the short-run supply curve of a competitive firm.

Analyze the conditions for a firm's expansion, contraction, or exit in the long run.

Understand the concept of perfect competition and how market prices affect firm decisions.

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Definitions:

Direct Materials

Direct materials are the raw materials that can be directly associated with the production of goods, easily identifiable and quantifiable costs within the manufacturing process.

Product Cost

An accounting measure that includes all costs required to bring a product to market, specifically focusing on direct materials, direct labor, and overhead costs.

Assembler's Wages

Compensation paid to workers specifically engaged in assembling products during the manufacturing process.

Direct Labor

The cost of wages for workers who are directly involved in the production of goods or services.