Who Gains from International Trade

question 45

Multiple Choice

Who gains from international trade?

• A) only the exporting nation
• B) only the importing nation
• C) both the importing and the exporting nations
• D) neither the importing nor the exporting nations
• E) The gains depends on which nation gets to keep the total revenue from the sale

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Definitions:

Profit-Maximizing

The process or strategy aimed at achieving the highest possible profit from activities, considering both revenue and costs.

Profit-Maximizing

A strategy or approach where a firm determines the price and output level that returns the greatest profit.

Average Total Cost

The total cost of production divided by the number of goods produced; it includes all variable and fixed costs.

Competitive Market

A market structure characterized by the presence of many buyers and sellers, where no single entity can influence the market price significantly.