The Figure Below Shows the Demand (D) and Supply (S)

question 103

True/False

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone.

---

Definitions:

Production Constraint

Any factor that limits the output of a production process, such as limited raw materials, machine capacity, or labor.

Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes to fixed costs and profit.

Constrained Resource

A limiting factor that restricts a company's ability to produce or perform at its maximum capability.

Split-off Point

The split-off point in production is the stage at which multiple products are derived from a common process and can be identified or measured separately.