An industry currently has firms, each of which has fixed costs of and average variable costs as follows: Quantity Average Variable Cost Compute a firm’s marginal cost and average total cost for each quantity from to . The equilibrium price is currently . How much does each firm produce? What is the total quantity supplied in the market?

Which of the following best explains the purpose of protectionist trade policies such as tariffs and subsidies? a. they make sure that governments have enough money to pay for fiscal policies. b. they give foreign competitors access to new markets around the world. c. they allow producers to sell their products more cheaply than foreign competitors. d. they enable producers to purchase productive resources from everywhere in the world.