Distinguish Between a Voluntary Export Restraint and a Quota

question 160

Essay

Distinguish between a voluntary export restraint and a quota.

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Definitions:

Labor

The use of human mental and physical efforts in the process of producing goods and offering services.

Average Total Cost

The average cost per unit of output, calculated by dividing the total production cost by the quantity of goods produced.

Fixed Cost

Expenses that do not change with the level of production or sales over a certain period, such as rent or salaries.

Output

The amount of goods or services produced by a person, machine, or industry.