Werner Installs Custom Sound Systems in Cars

question 130

Essay

Werner installs custom sound systems in cars.If he installs seven systems per day, his total costs are $300.If he installs eight systems per day, his total costs are $400.William will install eight sound systems per day only if the eighth customer is willing to pay at least:
A.$300.
B.$400.
C.$100.
D.$50.

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Definitions:

Tariffs

Taxes imposed by a government on imported goods.

Comparative Advantage

The capacity of a nation or company to generate a specific product or service with a smaller opportunity cost compared to its rivals.

Quotas

Limits set by governments on the quantity of a product that can be imported or exported within a given time period.

International Trade

The exchange of goods, services, and capital between countries across international borders.