It Is Sometimes Difficult to Transfer the Advanced Technologies of the Industrialized

question 186

Multiple Choice

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

• A)the technologies of the IACs are frequently based on relatively expensive labor and relatively abundant capital.
• B)the resource endowments of the IACs and the DVCs are highly similar.
• C)international patent laws prohibit such transfers.
• D)the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital.

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Definitions:

Total Costs

refer to the sum of all the expenses involved in producing a good or service, including both fixed and variable costs.

Profit Maximizes

The process by which a company establishes the price and volume of output that leads to the maximum profit.

Deadweight Loss

The reduction in total surplus that results from a market distortion, such as a tax or subsidy, signaling inefficiencies in allocation of resources.

Socially Optimal Level

A state at which the allocation of resources maximizes social welfare, often where marginal social benefit equals marginal social cost.