Which of the Following Theories Identifies the Nontransferability of Resources

question 23

Multiple Choice

Which of the following theories identifies the nontransferability of resources as a reason for international business?

• A) theory of comparative advantage
• B) imperfect markets theory
• C) product cycle theory
• D) None of these are correct.

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Definitions:

AC

Average Cost; the total cost of production divided by the quantity produced, indicating the cost per unit of output.

Monopoly

An economic situation where a sole seller dominates the market by providing a product that has no closely comparable substitutes.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price level and period.

Price

The sum projected, mandated, or allocated in money for acquiring something.