-Based on the Data in the Above Table, Then If

question 140

Multiple Choice

-Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United States is ________, and the opportunity cost of producing movies in Switzerland is ________.

• A)2 movies; 2 cuckoo clocks
• B)2.5 movies; 0.4 cuckoo clocks
• C)0.4 cuckoo clocks; 0.5 cuckoo clocks
• D)2.5 cuckoo clocks; 2 cuckoo clocks

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Definitions:

Net Costs

The total costs incurred by a business after deducting any discounts, allowances, or returns from the gross costs.

Tariffs

Taxes imposed by a government on imported goods, typically aimed at protecting domestic industries and increasing government revenue.

Quotas

Limits set by governments on the quantity of a good that can be imported or exported during a specific time period, often used to protect domestic industries.

Offshoring

Refers to the practice of relocating business operations or processes to another country, typically to reduce costs.