Which of the Following Is Not a Reason Why the Prospects

question 2

Multiple Choice

Which of the following is not a reason why the prospects for the further expansion of developing country commodity exports are likely to be limited?

• A)Low income elasticities for these products.
• B)Low likelihood of development of further synthetic substitutes.
• C)Continued agricultural protection despite trade agreements.
• D)Declining terms of trade.

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Definitions:

Marginal Cost

The additional cost incurred from making one more unit of a good or service.

Optimal-output

The level of production that maximizes a firm's profit, where marginal cost equals marginal revenue.

Break-even

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms are making neither excess profits nor losses.