Exhibit 19-2 -Refer to the Graph in the Exhibit.Suppose the World Price

question 57

Multiple Choice

Exhibit 19-2

-Refer to the graph in the exhibit.Suppose the world price of corn is $6, and no trade restrictions are in place.How many bushels of corn will Canada produce, consume, and export/import?  

• A) Canada will produce 7,000, consume 3,000, and import 4,000 bushels of corn.
• B) Canada will produce 7,000, consume 3,000, and export 4,000 bushels of corn.
• C) Canada will produce 3,000, consume 7,000, and import 4,000 bushels of corn.
• D) Canada will produce 3,000, consume 7,000, and export 4,000 bushels of corn.

---

Definitions:

Nondiscriminating

Characterized by equal treatment and lack of bias towards any party or group.

Pure Monopolist

A market structure where a single firm has exclusive control over the market, being the sole producer of a product with no close substitutes.

Economic Profit

The balance a firm holds after all expenses, both acknowledged and assumed, are deducted from its gross receipts.

Price Discriminating

A pricing strategy where identical or similar products or services are sold at different prices to different buyers.