When a Firm Implements Offshore Outsourcing, Consumers in Canada ________

question 30

Multiple Choice

When a firm implements offshore outsourcing, consumers in Canada ________, workers in Canada in the industry that is being outsourced ________ and workers in the foreign country in the industry that is being outsourced ________.

• A)gain; lose; lose
• B)lose; lose; gain
• C)lose; gain; lose
• D)gain; lose; gain
• E)gain; gain; gain

---

Definitions:

Long-run Supply Curve

A graphical representation showing the relationship between price and quantity supplied over a longer period, when all inputs can be varied.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied changes by an infinite amount in response to any price change, depicted as a horizontal line on a graph.

Long-run Equilibrium

A state in which all factors of production are variable, leading to a situation where firms only earn normal profits and no incentives exist for entering or exiting the industry.

Short-run Equilibrium

The condition in which the quantity supplied equals the quantity demanded at a particular price level, but only over a short period.