A Country Opens Up to Trade and Exports Computer Chips

question 36

Multiple Choice

A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from

• A) producers to consumers.
• B) government to consumers.
• C) producers to government.
• D) consumers to producers.

---

Definitions:

Total Fixed Costs

The sum of all costs that do not change with the level of production or sales over a certain period.

Unit Fixed Costs

The fixed costs associated with producing a single unit of product, which remain constant regardless of the level of production or sales volume.

Period Cost

Costs that are not directly tied to the production of goods and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Product Cost

The total cost associated with making or acquiring a product, including materials, labor, and overhead.