Waiting to Open a Factory in a Country That Has

question 74

Multiple Choice

Waiting to open a factory in a country that has just had a government coup exaggerates that economic shock due to:

• A) uncertainty.
• B) labor adjustment costs.
• C) time bunching.
• D) flexible investing.

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Definitions:

Proportion

A part or portion of a whole, often expressed as a fraction, percentage, or ratio, indicating the relative size of one quantity to another.

Payoff

The expected financial returns or benefits received from an investment, decision, or action.

Long-Run Equilibrium

A state in which all firms in a market are making normal profits, with no incentive to enter or exit the market.

Attendance

The act of being present at a location, such as in the workplace or at an event.