It Is Possible for the United States to Compete Against

question 80

Multiple Choice

It is possible for the United States to compete against cheap foreign labor because expensive domestic workers

• A) pay U.S. taxes.
• B) receive subsidies.
• C) are more productive.
• D) belong to unions.

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Definitions:

Manufacturing Cost

The total expense incurred in the production of goods, including raw materials, labor, and overhead costs.

Fixed Overhead

Indirect costs of manufacturing that remain relatively constant regardless of the level of production, such as rent, utilities, and salaries of managers.

Normal Production Costs

The typical expenses incurred in the process of producing goods, including direct labor, materials, and overhead.

Foreign Buyer

An individual or corporation from another country that purchases goods or services from a domestic seller.