Figure: Home's Exporting Industry I

question 47

Multiple Choice

Figure: Home's Exporting Industry I
The graph shows information about a home exporter.
(Figure: Home's Exporting Industry I) According to the
Graph, an export subsidy of $50 per unit results in a(n)
________ of government revenue by the amount of
______.

• A)increase; $5,000
• B)increase; $2,500
• C)decrease; $5,000
• D)decrease; $21,000

---

Definitions:

Marginal Costs

The expense incurred from the production of one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Grazing

The act of animals eating grass or other vegetation growing close to the ground.

Average Fixed Cost

is the fixed costs of production divided by the quantity of output produced, showcasing how these costs spread over different production levels.