If the world price for gadgets were $1, how many gadgets would Econia produce?

To determine how many gadgets Econia would produce at a world price of $1, it's important to understand the relationship between price and production in an economic context. Generally, when the price is set at a certain level, producers will supply a quantity based on the price they can receive for their product, which typically aligns with their marginal cost of production.

In this scenario, if the price for gadgets is set at $1, Econia's production level would be based on what quantity maximizes their profit at this price point. Producers will only manufacture gadgets as long as the price they receive covers their production costs.

The choice indicating that Econia would produce 10 gadgets signifies that this is the number of gadgets that can be generated profitably at that world price. If the cost of producing additional gadgets exceeds the price of $1, beyond this quantity, it would not make financial sense for Econia to produce more, as they would incur losses.

Production levels typically depend on both external market conditions (like world prices) and internal cost structures (like production costs). In this case, 10 gadgets at $1 likely reflect the optimal production level for Econia's economic conditions, ensuring efficient resource allocation while remaining profitable.