A Consequence of Increasing Marginal Costs of Producing Laptop Computers

question 147

Multiple Choice

A consequence of increasing marginal costs of producing laptop computers in the United States is

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

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Definitions:

Production Function

A mathematical relationship that describes the maximum amount of output that can be produced from a given set of inputs under certain technology.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs or resources.

Marginal Product

The increase in output resulting from a one-unit increase in the input, keeping all other inputs constant.

Factor X

A placeholder term for an unspecified or unknown factor that can influence outcomes in a given situation or calculation.