It Has Been Said That the Addition of 10 New

question 45

Multiple Choice

It has been said that the addition of 10 new members to the European Union in 2004 is likely to significantly change the dynamics within the EU. What was the explanation given for this statement?

• A)The EU is getting too large to manage effectively.
• B)The members added in 2004 have very different economic traditions than the 15 members that joined before 2004.
• C)The members added in 2004 have more economic power than the members that joined the EU between 1957 and 1995.
• D)The purchasing power of the EU was weakened by the addition of additional members.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true financial gain of a business.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on differences in costs.

Marginal Cost

The additional expense incurred from producing another unit of a product.

Marginal Revenue

The additional revenue that a company generates from selling one more unit of a good or service.