Global Trade Has This Important Effect on Developing New Competitors

question 46

Multiple Choice

Global trade has this important effect on developing new competitors.

• A)It facilitates the transfer of technology, allowing former assemblers to become creators.
• B)It facilitates the transfer of knowledge, allowing former builders to become assemblers.
• C)It reduces competition.
• D)It reduces rivalry.

---

Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Profit-Maximizing Seller

An economic agent whose primary objective is to achieve the highest possible profit from their sales.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, used to evaluate the trade-offs in resource allocation.

Accounting Profits

The total revenue of a company minus the explicit costs and expenses directly related to its operations, as shown in its financial statements.