When a Country Both Exports and Imports a Type of Commodity,the

question 40

Multiple Choice

When a country both exports and imports a type of commodity,the country is engaged in

• A) intra-industry trade.
• B) increasing returns to scale.
• C) imperfect competition.
• D) inter-industry trade.
• E) an attempt to monopolize the relevant industry.

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Definitions:

Operations

Refers to the day-to-day activities involved in running a business, including production, sales, and administration functions.

Variable Costing

An accounting method that only includes variable costs in the cost of goods sold and analyzes fixed costs separately.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold (COGS), highlighting the profitability of manufacturing activities.