Which of the Following Is a Major Source of the Improvement

question 70

Multiple Choice

Which of the following is a major source of the improvement in the capabilities of a foreign site?

• A) Increasing abundance of advanced factors of production in the nation where the factory is located
• B) Changes in the labor costs associated with the foreign site
• C) Fluctuations in the quality of the product coming out of the foreign site
• D) Sudden changes in the currency exchanges rates with the nation in which the factory is located

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Definitions:

Perfectly Price Elastic

A market situation in which demand or supply responds infinitely to changes in price, meaning any tiny price change results in an infinite quantity demanded or supplied.

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices during a given period.

Tickets

Documents or electronic vouchers that grant the holder the right to admission to an event, transport service, or the like.

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price.