Based on Figure 6

question 28

Multiple Choice

Based on Figure 6.1,how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?

• A)The government will raise $2.5 million.
• B)The government will raise $5 million.
• C)The government will raise $15 million.
• D)The government will raise $32.5 million.
• E)The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.

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Definitions:

Salespersons' Commissions

Payments made to sales staff based on the volume or value of sales they generate, typically structured as a percentage of the sales price.

Not a Product Cost

Costs that are not directly tied to the production of goods or services, such as marketing or administrative expenses.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they occur, such as selling, general, and administrative expenses.

Salespersons

Individuals who are responsible for selling products or services to customers, often tasked with meeting sales quotas and engaging in customer service.