Which of the Following Is a Primary Reason That Firms

question 1

Multiple Choice

Which of the following is a primary reason that firms acquire resources and supplies from other countries?

• A) comply with trade regulations
• B) minimize resource competition
• C) decrease shipping and handling costs
• D) obtain items unavailable in home country

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Definitions:

Most Profitable Output

The level of production at which a company achieves the highest possible profit, where marginal revenue equals marginal cost.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, freedom of entry and exit, and perfect information.

Barriers

Obstacles that prevent or hinder the movement or action of goods, services, people, or information.

Identical Product

A product that is exactly the same as another in every way, making it indistinguishable in terms of quality, appearance, and function.