-The Figure Above Shows the Costs and Demand Curves for the Bigshow

question 264

Multiple Choice

-The figure above shows the costs and demand curves for the Bigshow Cable Company. If the firm is required to set its price according to an average cost pricing rule, the price is ________ and the quantity produced is ________ million.

• A) $8; 1
• B) $6; 1
• C) $6; 2
• D) $4; 3

Analyze the impact of world prices on a country's trade behavior (exporting and importing).

Apply the concept of comparative advantage to determine trade patterns between nations.

Identify factors that influence a nation's decision to specialize in the production of certain goods.

Analyze the impact of specialization and trade on a nation's production and consumption.