When the Monopoly Firm Is Able to Charge a Higher

question 195

Multiple Choice

When the monopoly firm is able to charge a higher price because of a quota, the amount of ________ also increases, thus magnifying the importing nation's __________.

• A) quota rents; losses
• B) comparative advantage; gains from trade
• C) profits; welfare
• D) protection; employment gains

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Definitions:

Standard Direct Labour Rate

The predetermined cost per hour for direct labor, used in budgeting and measuring operational efficiency.

Fringe Benefits

Additional compensation provided to employees beyond their normal wages or salaries, such as health insurance, retirement plans, and paid vacations.

Standard Costing System

An accounting method that assigns predetermined costs to goods and services, used to control costs and measure performance.

Fixed Overhead

Regular, ongoing expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.