Use the Following to Answer Questions

question 192

Multiple Choice

Use the following to answer questions:
Figure: International Trade 4
-(Figure: International Trade 4) Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

• A) increase by $18.
• B) increase by $50.
• C) decrease by $36.
• D) increase by $22.50.

Understand the conditions under which firms in a competitive market earn zero economic profit in the long run.

Identify the impact of factor prices on the market supply curve in the long term.

Understand the concept of a constant cost industry and its characteristics.

Explain the effects of short-run profit on market dynamics and long-run equilibrium in price-taker industries.

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Definitions:

Environment

The sum of all external conditions and influences affecting the life, development, and survival of an organism or group of organisms.

Metamorphic Rock

A type of rock that has been changed by heat, pressure, and chemical processes from its original form, usually buried deep within the Earth's crust.

Sandstone

A medium-grained, clastic sedimentary rock composed mostly of grains of sand, along with other material.

Weathering

The process by which rocks, minerals, and soils are broken down by the effects of weather, water, and biological organisms.