Moving Production from a High-Cost Producer to a Low-Cost Producer

question 85

Multiple Choice

Moving production from a high-cost producer to a low-cost producer will

• A)lower total surplus.
• B)raise total surplus.
• C)lower producer surplus.
• D)raise producer surplus but lower consumer surplus.

---

Definitions:

Syllogism

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises), each sharing a common or middle term not present in the conclusion.

Hypothetical Syllogism

A form of logical argument where two conditional statements lead to a conclusion, if P then Q; if Q then R; therefore, if P then R.

Imported Wine

Wine brought into a country from foreign vineyards or producers, often subject to regulations and duties.

Domestic Wine

Wine that is produced within the same country the consumer is in, as opposed to imported wine.