-The Above Figure Shows the U

question 152

Multiple Choice

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,U.S.production is equal to ________ batteries per year.When a $2 tariff is in place,U.S.production is equal to ________ batteries per year.

• A) 100,000; 300,000
• B) 100,000; 500,000
• C) 300,000; 100,000
• D) 300,000; 500,000
• E) 900,000; 700,000

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume.

Production

Use of resources, such as people and machinery, to convert materials into finished goods and services.

Inflexible

Lacking the ability to adapt or change according to different situations, conditions, or demands; rigid in approach or structure.

Skimming Pricing

A pricing strategy where a new product is priced high initially to maximize profits from customers willing to pay more, before lowering the price over time.