Relative to a Closed Economy, If Utopia Opened Itself to Trade

question 54

Multiple Choice

Relative to a closed economy, if Utopia opened itself to trade domestic tile producers would

• A) produce 150 more cases of tile.
• B) produce 150 fewer cases of tile.
• C) produce 100 fewer cases of tile.
• D) produce the same amount of tile.

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Definitions:

Marginal Revenue

The additional revenue that an entity receives from selling one more unit of a good or service.

Average Revenue

The amount of revenue received per unit of a good or service sold, calculated by dividing total revenue by the total number of units sold.

Maximize Profits

Business objective to achieve the highest possible profit from operations and sales.

Minimize Losses

A strategy aimed at reducing the negative impacts or financial losses in operations, investments, or other activities.