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The before-trade price of fish in Germany is $8.00 per pound. The world price of fish is $6.00 per pound. Germany is a price-taker in the fish market, If Germany allows trade in fish, then Germany will become an a. importer of fish and the price of fish in Germany will be $6.00. b. importer of fish and the price of fish in Germany will be $8.00. c exporter of fish and the price of fish in Germany will be $6.00. d. exporter of fish and the price of fish in Germany will be $8.00.

Respuesta :

Answer:

a. importer of fish and the price of fish in Germany will be $6.00

Explanation:

A price taker cannot set market price for its product. A price taker accepts the market price.

The price of fish in Germany is $8 and world price is $6. The cost of fish in Germany is higher than in the rest of the world, this means that the cost of fishing in Germany is higher than in the rest of the world. It would be reasonable for Germany to import fish so that it would dedicate resocurces to other activities.

Because Germany is a price taker,it would sell at the world price which is $6.

I hope my answer helps you

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