Average total cost reveals how much total cost will change as the firm alters its level of production

Suppliers often reduce prices because they

a. have a shortage of products to sell b. have a surplus of products to sell c. want to decrease consumer demand d. want to reduce profits and go out of business

If the United States imposes a tariff on foreign chocolate, how are U.S. producers of chocolate affected?

A) The quantity of chocolate they sell decreases because U.S. consumption of chocolate decreases. B) The quantity of chocolate they produce increases. C) The price at which they sell their chocolate falls. D) They are harmed because foreign exporters of chocolate increase their supply in response to the higher price. E) They are unaffected because the quota applies to foreign producers, not to U.S. producers.