The Figure Given Below Shows the Import Demand and Export

question 25

Multiple Choice

The figure given below shows the import demand and export supply curves of corn of the U.S.and Mexico. Figure 20.2
- Refer to Figure 20.2.The no-trade equilibrium price of a bushel of corn in Mexico is:

• A)$2.
• B)$4.
• C)$6.
• D)$8.
• E)$10.

---

Definitions:

Reciprocal Services

The process in cost accounting where two or more departments provide services to each other and the costs of these services are allocated between them.

Direct Method

A costing approach that allocates service department costs directly to producing departments without considering service department interactions.

Support Department

A division within an organization that provides essential services to other departments but does not directly contribute to profit, such as IT or HR.

Cost Allocation

The process of distributing or assigning indirect costs to different departments, products, or projects.