Answer the Question(s)below Based Upon the Following Diagram Which Depicts

question 19

Multiple Choice

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable.

-Refer to the figure above.If A forms a customs union with C,A's welfare will change by

• A)$a + $e
• B)$a + $b + $c + $d + $e
• C)$a + $e - $b - $c - $d
• D)$a + $e - $h - $i - $j

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Definitions:

Direct Cost

Expenses that can be directly traced to producing specific goods or services, such as raw materials and direct labor.

Indirect Cost

Costs not directly traceable to a specific product or project, such as utilities or rent.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profits.

Direct Manufacturing Cost

Costs that are directly attributable to the production of a specific product, including direct materials and direct labor.