Which of the following factors most likely would explain why a U.S. company would choose to operate in the United States despite much lower wages in Mexico?
A. The absence of significant trade barriers
B. The low cost of transportation between the two countries
C. The lower productivity of Mexican workers
D. The presence of many Japanese companies in Mexico
Answer: C
You might also like to view...
Figure 7-7
In Figure 7-7 at 100 units, FC equals
A. 1,000. B. 1,800. C. 800. D. 80.
When an isocost line is just tangent to an isoquant, we know that
A) output is being produced at minimum cost. B) output is not being produced at minimum cost. C) the two products are being produced at the least input cost to the firm. D) the two products are being produced at the highest input cost to the firm.
We measure a person's productive contribution in a market system by
A) the marginal factor cost theory of the firm. B) the profit maximization theory of the firm. C) the marginal revenue product theory of wage determination. D) the egalitarian theory of wage determination.
The primary purpose of the Celler-Kefauver Act is to prevent unfair and deceptive business practices
a. True b. False Indicate whether the statement is true or false