Answer:
A surplus exists in a market if the supply happens to be excessive
Explanation:
In a situation where there is surplus, this shows that the quantity supplied is more than the quantity demanded which would allow to incur low sales hence; there would be reduction in price in order to avert such and increase the demand.
Answer: Setup time is dependent on the number of units subsequently produced.
Explanation:
It should be noted that a setup is a required activity and a set of activities. A setup time is also referred to as the changeover time.
The statement that "Setup time is dependent on the number of units subsequently produced" is false. The setup time refers to the interval that is needed to adjust the machine settings in order to make it ready to process a job. The setup time isn't dependent on the number of units that's subsequently manufactured.
Answer: False
Explanation:
A tariff is a tax that is imposed by the government of a particular country in order to curtail the number of imported goods brought into the country.
Based on the above scenario, the reduction in consumer surplus is not $500 million but rather $600 million which is the addition of $100 million, $200 million and $300 million.
Therefore the question is false.
