Exhibit 18-5 -In Exhibit 18-5, If the World Price of a Baseball

question 5

Multiple Choice

Exhibit 18-5
-In Exhibit 18-5, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the amount of tariff revenue the United States government collects?

• A)a
• B)b
• C)c
• D)f

---

Definitions:

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.

Producing Purses

Involves the manufacturing and crafting of handbags and purses, often focusing on aspects like design, material quality, and functionality.