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15. If Brazil has a comparative advantage in producing sugar, and trade in sugar is allowed, what can be said about Brazil? (1 mark) a.
15. If Brazil has a comparative advantage in producing sugar, and trade in sugar is allowed, what can be said about Brazil? (1 mark) a. Brazil will become an importer of sugar. b. Brazil will become an exporter of sugar. c. Brazil could only become an importer of sugar if it has absolute advantage in producing sugar. d. Brazil could only become an exporter of sugar if it has absolute advantage in producing sugar. Price per Domestic Saddle Supply C E T Tariff World Price G Domestic Demand Q1 quantity of Saddles 16. Refer to the above figure. What would producer surplus be after the tariff? (1 mark) a. A + B + G b. A + C+G C. C + G d. GCost (5) D Quantity of Output 17. Refer to the above figure. Which of the curves is most likely to represent the average variable cost? (1 mark) a. A b. B C.C d. D 18. When do economies of scale occur? (1 mark) a. when long-run average total costs rise as output increases b. when long-run average total costs fall as output increases C. when average fixed costs are falling d. when average fixed costs are constant
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