Companies from the Nation of Moldavia Are More Efficient in the Production

question 69

Multiple Choice

Companies from the nation of Moldavia are more efficient in the production of certain types of apparel, while companies from the United States are more efficient in the production of certain types of computers. Which economic theory predicts that capital would move to Moldavia to be invested there in the apparel industry and to the United States to be invested in its computer companies?

• A)rapid specialization theory
• B)investor collectivism theory
• C)free-trade doctrine
• D)investor individualism doctrine

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Definitions:

Monthly Sales

The total revenue generated from the sale of goods or services in one month.

Unit Contribution Margin

The gap between the price per unit at which an item is sold and its per-unit variable expense.

Unit Variable Cost

The variable cost associated with producing one additional unit of a product.

Monthly Sales

Monthly sales are the total sales revenue a company generates within a specific month.