Refer to the Table Below to Answer the Following Questions

question 63

Multiple Choice

Refer to the table below to answer the following questions.
Table 7.1.1
Glazeland's Doughnut Market

-Table 7.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.60 a doughnut then Glazeland will produce ________ doughnuts and will ________ doughnuts.

• A)2 million;import 3 million
• B)4 million;import 1 million
• C)4 million;export 1 million
• D)5 million;import 3 million
• E)5 million;export 3 million

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Definitions:

Installation Cost

Expenses associated with setting up or installing an asset for use, often capitalized and amortized over the asset's useful life.

Purchase Cost

Purchase cost includes all the expenses that a company incurs to acquire goods or services, including price, taxes, shipping, and handling fees.

Total Asset Turnover

An efficiency ratio indicating how effectively a company uses its assets to create sales, calculated by comparing its net sales to its average total assets.

Net Sales

The revenue a company earns from sales once it subtracts returns, allowances for damaged or missing products, and discounts.