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Seeking Cheaper Sources of Materials or Labor Offshore Is Called

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Seeking cheaper sources of materials or labor offshore is called offshoring.


Definitions:

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit of a good or service and the quantity produced.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable on another.

Profit-Maximizing

A strategy or point at which a firm reaches the maximum possible profit with its current resources and constraints.

Fixed Cost

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

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