Answer the Following Question(s)using the Information Below

question 38

Multiple Choice

Answer the following question(s) using the information below.Specialty Wheels Ltd.manufactures three different product lines, Model X, Model Y, and Model Z.Considerable market demand exists for all models.The following per unit data apply:

-If there is excess capacity then which model is the most profitable to produce?

• A)Model X
• B)Model Y
• C)Model Z
• D)Models X and Y
• E)Models X and Z

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Definitions:

Nontariff Barrier

Any form of restrictive regulation or procedure other than tariffs that countries use to control the amount of trade across their borders, including quotas, embargoes, sanctions, and levies.

Export Quota

A government-imposed limit on the quantity of a specific good that can be exported over a given period, used to control trade balances.

Domestic Consumption

This term refers to the total amount of goods and services consumed within a country's borders, indicating the level of domestic demand.

Tariff

A tax imposed by a government on imported or exported goods.