If a Country Has the Comparative Advantage in Producing Wooden

question 131

Essay

If a country has the comparative advantage in producing wooden furniture, then with free trade:
A.Athe country will import wooden furniture.
B.producer surplus in the market for wooden furniture will increase.
C.consumer surplus in the market for wooden furniture will increase.
D.the domestic quantity supplied will be less than the domestic quantity demanded.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as more of that good is produced.

Average Variable Cost Curve

A graphical representation showing how the average variable cost of production changes as the quantity of output changes.

Marginal Cost

The augmentation in cumulative cost resulting from the manufacture of an additional unit.

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit of output.