Use the Following to Answer Questions

question 127

Multiple Choice

Use the following to answer questions:
Figure: Foreign Trade 2
-(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the producer surplus gained as a result of prohibiting trade in this market?

• A) $15,000
• B) $30,000
• C) $12,500
• D) $22,500

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Write Off

The process of recognizing that a portion of a company's assets has become worthless and expensing them to the income statement.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.