A Particular Type of Quota That Limits All Forms of Trade

question 43

Multiple Choice

A particular type of quota that limits all forms of trade on entire categories of goods and services is referred to as _____.

• A) a tariff
• B) an embargo
• C) an exemption
• D) a subsidy

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Definitions:

ATC

ATC, or Average Total Cost, is the total cost divided by the number of goods produced, reflecting the average cost of production per unit.

Economic Profit

The earnings excess over the summation of a firm's clear and hidden financial outlays, showcasing its comprehensive income versus expenses.

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus as profit.

Marginal Revenue

The enhanced income from disposing of one more unit of a product or service.