Because Chinese Wages Are Much Lower Than Wages in the United

question 203

True/False

Because Chinese wages are much lower than wages in the United States, the Chinese can outcompete the United States in everything.

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Definitions:

Entry Barrier

Obstacles that make it difficult to enter a particular market, including high start-up costs, strict regulations, or significant competition.

Marginal Revenue

The supplementary earnings achieved by selling another unit of a good or service.

Demand Schedule

A table showing the quantity of a good that consumers are willing to buy at various price levels, holding all other factors constant.

Economies of Scale

Economies of scale describe the cost savings companies experience as their volume of production increases, leading to a lower cost for each unit produced.