A deficit is an excess on expenditure or a loss in business operations, usually happens when a country imports more than it exports.
A surplus is the excess of a corporation´s net worth over the par or stated value of its stock. This occurs when there is more income on money than the one spend.
In the question given the exports, that is the activity of selling national production to foreign countries was lesser than the imports, that means buying products to foreign nations. Because of that, there was a deficit, because there were more imports than exports.
A firm in monopolistic competition does not take full advantage of its economies of scale because it's the only oferent of a good. A firm in perfect competition produces at the lowest average cost possible.
