Amtech Corporation, an American Firm That Manufactures Wireless Routers, Has

question 12

Multiple Choice

Amtech Corporation, an American firm that manufactures wireless routers, has its headquarters in California. The firm relocates its call centers to Malaysia to lower its costs. However, the firm notices that its call center in California receives much higher customer ratings when compared to the call centers in Malaysia. Amtech Corporation decides to shift 350 call center jobs back to California over a period of two years. This shift of call center jobs is indicative of:

• A) nearshoring.
• B) reshoring.
• C) franchising.
• D) licensing.
• E) importing.

Learn the purpose and limitations of various equitable remedies in contract law.

Understand the concept of expected utility and how it applies to decision-making under uncertainty.

Identify and analyze risk preferences (risk-averse, risk-neutral, and risk-loving) and their implications on decision-making.

Calculate expected utility and expected income given different probabilities and outcomes.

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Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Economic Profits

Profits exceeding the total opportunity costs of a business, indicating it is outperforming its next best alternative.

Forgone Entrepreneurial Income

The potential income an entrepreneur misses out on when choosing to start their own business rather than working for wages.