Direct Foreign Investment Is Perceived by Foreign Governments To

question 11

Multiple Choice

Direct foreign investment is perceived by foreign governments to:

• A)be a cause of national problems.
• B)be a remedy for national problems.
• C)either A or B is possible.
• D)have no impact on national problems.

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Definitions:

ATC Curve

Average Total Cost Curve, a graph that shows the cost per unit of output produced, plotted against the quantity of output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in a decrease in the per-unit cost as the output increases.

AVC

Average Variable Cost, which is the cost a company incurs to produce one additional unit of a product, excluding fixed costs.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, often used in economics to analyze production efficiency.