Moving Production from a High-Cost Producer to a Low-Cost Producer

question 85

Multiple Choice

Moving production from a high-cost producer to a low-cost producer will

• A)lower total surplus.
• B)raise total surplus.
• C)lower producer surplus.
• D)raise producer surplus but lower consumer surplus.

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Definitions:

Water Transportation

The movement of people or goods via rivers, lakes, seas, and oceans, utilizing different types of vessels for commerce, recreation, or military purposes.

Very High Capacity

Describes systems, facilities, or processes that can handle a significantly large volume of transactions, data, or throughput.

Low Cost

Referring to a strategy or product characterized by offering lower prices compared to competitors, usually by reducing costs in production, materials, or operations.

Sustainable Procurement

The acquisition process whereby organizations meet their needs for goods, services, works, and utilities in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to the organization but also to society and the economy, while minimizing damage to the environment.