Suppose Several United States Software Design Companies Compete with Each

question 18

Multiple Choice

Suppose several United States software design companies compete with each other in a perfectly competitive environment.If one company decides to move some of its offices to a low-wage country in order to reduce operating costs:

• A)the other companies will still be able to remain profitable while operating solely in the United States.
• B)the company that moves to the lower-wage country will earn positive economic profits in the long run because it will keep a cost advantage.
• C)the other companies will also move to the low wage country in order to remain in the industry.
• D)the first company to move will charge a lower price than the companies remaining in the United States.

Calculate the total repayment amount (principal + interest) for short-term loans.

Estimate interest by rounding the principal to the nearest hundred dollars and using shortcuts for interest calculation.

Determine the principal amount or rate given other loan terms.

Understand and differentiate between exact simple interest and ordinary simple interest.

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Definitions:

Customers Served

The total number of unique customers who receive services or products from a business during a specific period.

Budgeting Formulas

Mathematical expressions or rules used to plan and control income and expenditure over a specified period.

Actual Results

Refers to the real, achieved outcomes of financial and operational activities within a specific period.

Cost Drivers

Factors that cause the cost of a product or service to change, such as materials, labor, and overhead expenses.