Suppose That the World Price of Sugar Is $100 Per

question 34

Multiple Choice

Suppose that the world price of sugar is $100 per ton. If a large country gives its sugar exporters a subsidy of $50 per ton, then its exporters will receive (in total) :

• A) $150 per ton.
• B) $50 per ton.
• C) more than $100 but less than $150 per ton.
• D) $100 per ton.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Nonfinancial Information

Data that relates to the operational, environmental, and social aspects of a business, which cannot be easily quantified in monetary terms.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed expenses and contribute to profits.