If,at the World Price,domestic Producers Are Producing and Selling 100

question 149

Multiple Choice

If,at the world price,domestic producers are producing and selling 100 units of a good,then at the world price plus tariff it follows that

• A) they will be producing and selling more than 100 units of the good.
• B) they will be producing and selling fewer than 100 units of the good.
• C) producers' surplus will be less than what it is when domestic producers produce and sell 100 units.
• D) consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units.
• E) c and d

---

Definitions:

Efficient Joint Production

Efficient joint production occurs when a firm or economy can produce multiple products at the lowest possible cost, maximizing the use of inputs to achieve optimal output levels.

Downward-Sloping Demand

The economic concept that, all else being equal, as the price of a good decreases, consumer demand for that good will increase.

Public Ownership

The ownership of assets by the government or the entire community rather than by private individuals or corporations.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.