A Consequence of Increasing Marginal Costs of Producing Laptop Computers

question 147

Multiple Choice

A consequence of increasing marginal costs of producing laptop computers in the United States is

• A)the United States will import laptop computers from countries that don't experience increasing marginal costs.
• B)the United States will stop short of complete specialization in the production of laptop computers.
• C)the United States will not export laptop computers.
• D)the United States will likely impose trade restrictions on imported laptop computers.

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Definitions:

Monthly Ending Inventories

The quantities and valuation of goods available for sale or use, recorded at the end of each month.

Budgeted Production

The estimated amount of goods that a company plans to produce in a certain period, used in planning and cost control.

Merchandise Purchases

The total cost of goods bought for resale during a specific accounting period, excluding any discounts or allowances.

Cash Disbursements

The total payments made by a business for various purposes, including expenses, purchases, and debt repayment.