Which of the Following Elements Is Often Overlooked When Firms

question 10

Multiple Choice

Which of the following elements is often overlooked when firms estimate the costs of outsourcing to low-wage countries?

• A) language barriers
• B) overabundance of skilled and educated workers
• C) lack of inventory
• D) shipping distances

---

Definitions:

Economic Losses

Occur when a company's total costs exceed its total revenues, resulting in a negative profit.

Industry Output

The total production of goods and services by all firms in a specific industry over a given period.

Market Supply Curve

A graph showing the total quantity of a good that producers are willing to sell at different prices.

Easy Entry

A characteristic of market structures where new competitors can easily enter the market without significant barriers or cost.