Refer to the Graph Above Which Shows the Import Demand

question 83

Multiple Choice

Refer to the graph above which shows the import demand and export supply curves for two nations that produce a certain product. Lines 6 and 8 apply to one nation and represent, respectively:

• A) Import demand and export supply
• B) Export supply and import demand
• C) Domestic supply and domestic demand
• D) Domestic demand and domestic supply

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Definitions:

Total Variable Cost

The sum of all variable expenses that are incurred in the direct production of goods or services.

AVC

Average Variable Cost, which is the variable cost per unit of output.

Marginal Cost

The production cost for one more unit of a product.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.