-In the Figure Above, When 40 Units Are Produced the Average

question 75

Multiple Choice

-In the figure above, when 40 units are produced the average fixed cost is

• A) $8.
• B) $4.
• C) $12.
• D) $20.

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Definitions:

Export Subsidy

A governmental financial support for companies exporting products, designed to encourage exports by making them price competitive in global markets.

Dumping

A firm’s or an industry’s sale of products on the world market at prices below its own cost of production.

Natural Comparative Advantage

A situation where a country or region can produce a particular good or service at a lower opportunity cost compared to other countries or regions.

Factor Endowments

Refers to the quantity and quality of resources a country or region has available, such as labor, land, and capital.