A Consequence of Increasing Marginal Costs of Producing Digital Music

question 153

Multiple Choice

A consequence of increasing marginal costs of producing digital music players in Japan is

• A)Japan will not export digital music players.
• B)Japan will stop short of complete specialization in the production of digital music players.
• C)Japan will import digital music players from countries that don't experience increasing marginal costs.
• D)Japan will likely impose trade restrictions on imported digital music players.

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Definitions:

Long-Term Debt Ratio

The long-term debt ratio measures the proportion of a company's total debt that is due in more than one year, indicating the extent to which a company relies on long-term borrowing for its financing needs.

Total Debt

The sum of all owed money by an entity, including short-term and long-term liabilities.

Receivable Turnover

A financial ratio that measures how efficiently a company collects its accounts receivable.

Inventory Turnover

A measure indicating the frequency at which a company's inventory is sold and replenished within a certain timeframe, reflecting the effectiveness of its inventory control.