China Is Attracting the Attention of Multinational Companies and Investors

question 3

Multiple Choice

China is attracting the attention of multinational companies and investors for all of the following reasons EXCEPT its ________.

• A) move to adopt market-oriented economic policies
• B) abandonment of many communist principles
• C) hard-working, low-cost labor force
• D) state ownership of key industries

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Definitions:

Short-Run

A period during which at least one of a firm's inputs is fixed, limiting its ability to adjust to demand changes.

AVC

Average Variable Cost, which is the total variable costs of production divided by the quantity of output.

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be varied.

Variable Costs

Expenses that directly fluctuate in accordance with the amount of production or output.