Figure 9-1 ​

question 37

Multiple Choice

Figure 9-1
​
Uganda

-Refer to Figure 9-1. When trade is allowed,

• A)Ugandan producers of coffee become better off and Ugandan consumers of coffee become worse off.
• B)Ugandan consumers of coffee become better off and Ugandan producers of coffee become worse off.
• C)both Ugandan producers and consumers of coffee become better off.
• D)both Ugandan producers and consumers of coffee become worse off.

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Definitions:

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing how fixed costs change with output levels.

Average Variable Cost

The total variable cost divided by the number of units produced, reflecting the variable cost of producing each additional unit.

Total Variable Cost Curve

A graph that shows the relationship between total variable cost and the level of a firm’s output.

Factor Prices

The prices of the inputs used in the production process, such as labor, capital, and land.