The Following Question(s)refer to the Figure Below,which Shows the Effect

question 164

Multiple Choice

The following question(s) refer to the figure below,which shows the effect of a country imposing a tariff on an imported product.
Figure 17-14

-Refer to Figure 17-14.If the world price of this good is PW and there are no restrictions on imports,domestic suppliers will produce ____ units,domestic demanders will consume ____ units,and total imports will be ____ units.

• A)30;100;70
• B)50;100;50
• C)30;80;80
• D)100;70;30

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Definitions:

Fixed Costs

Expenses that do not change with the amount of goods or services produced by a business.

Sunk Costs

Sunk costs refer to expenses that have already been incurred and cannot be recovered, and therefore should not affect future business decisions.

Opportunity Costs

The missed opportunity to benefit from different options when a single choice is made.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.