Answer: 25%
Explanation:
Level of trade is simply calculated as the percentage of export of a particular country to its share of the gross domestic product.
Based on the scenario given in the question, the level of trade will be:
= (Exports / GDP) × 100
= 50/200 × 100.
= 1/4 × 100
= 25%
Answer:
a. the buyer’s consumer surplus for that good is maximized.
Explanation:
The consumer will purchase up to the moment at whose preference price matches the market price.
Because of the diminished return theory, the following unit (k+1) will have a lower benefit to the consumer thus, it will have purchased only if the price is lower. Therefore, it will not purchase as the market price is the same as the previous unit but the consumer benefit is lower.
Answer:
not change.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Measure of welfare e.g. effects of pollution
Answer:
a. Total revenue = Quntity sold * Price per unit
marginal Revenue = TRn - TRn-1
Marginal revenue by definition is the additional income received from the selling of additional unit.
therefore, marginal revenue equal the price of additional unit sold by the firm.
if marginal revenue of 10th unit produced = $41, it means the price per unit equal $41
Total revenue of 10 units = $41 * 10 = $410
Total revenue of 9 units = $41*9 = $369
b. Marginal revenue of 20th product produced = $11
Therefore, price per unit = $11
Total revenue of 20 units produced = $11*20 = $220
Explanation: