Which of the Following Is True About Doing Business with Former

question 118

Multiple Choice

Which of the following is true about doing business with former communist nations in East Europe and Asia?

• A)These countries have shown no commitment toward democratic and free-market policies.
• B)These countries have completely moved away from their unstable totalitarian pasts.
• C)These economies now rival those of Western industrial powers.
• D)These economies are characterized by high risks as well as high returns.

---

Definitions:

Market Price

The actual selling price of a good or service in the marketplace, influenced by supply and demand.

Long Run

A period in which all factors of production and costs can be fully adjusted, including entry and exit of firms.

Economic Profits

Profits that exceed the opportunity costs of all inputs, indicating a return beyond the norm expected in competitive markets.

Total Cost

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.