Which of the Following Is NOT One of the Reasons

question 68

Multiple Choice

Which of the following is NOT one of the reasons companies are focusing on international markets?

• A)Economic, social, and political changes around the world have opened markets with opportunities for greater growth and profits.
• B)Globalization is revolutionizing the world far more radically and rapidly than industrial development and technological changes of previous eras.
• C)Foreign markets offer companies from small nations economies of scale to compete against larger companies.
• D)Domestic markets offer companies limited opportunities for expansion.
• E)The United States has been running a balance-of-trade surplus.

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Definitions:

Profit-maximizing Output

The level of production at which a company achieves the maximum possible profit, where marginal cost equals marginal revenue.

Demand

This refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Cost Data

Information related to the expenses incurred in the production of goods or delivery of services, essential for pricing, budgeting, and economic analysis.

Perfectly Competitive Markets

A market structure characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to price-taking behavior.