Which of the Following Circumstances Would Be Least Likely to Lead

question 24

Multiple Choice

Which of the following circumstances would be least likely to lead to a need for a new location?

• A)Shifting of markets.
• B)Depletion of basic inputs.
• C)Growth in demand that is leading to greater utilization of existing capacity.
• D)The need to expand into new markets.
• E)The opportunity to take advantage of globalization trends.

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Definitions:

Pareto Optimal Allocation

A condition of resource distribution in which no one person can be made better off without causing detriment to at least another person.

Endowed

In economics, it refers to the initial allocation of income, wealth, or goods to an individual or an entity at the start of an economic analysis or experiment.

Units

Basic quantities or measurements used to express variables, stock, or outputs in any kind of scientific, economic, or engineering calculations.

Edgeworth Box

A diagram used in economics to show the distribution of resources between two individuals, illustrating how trade can lead to an efficient allocation.