What Are Some of the Possible Outcomes of Interdependency

question 20

Multiple Choice

What are some of the possible outcomes of interdependency?

• A) reliance on other firms for supplies or technology
• B) relocating in foreign markets because of government intervention
• C) component standardization
• D) technology intensity
• E) all of the above

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Definitions:

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and direct provision of goods and services.

Marginal External Benefit

Increased benefit that accrues to other parties as a firm increases output by one unit.

Pollution Emissions

The release of pollutants into the environment, typically referring to harmful substances discharged from industries, vehicles, and other sources.

Marginal External Cost

The cost resulting from producing one additional unit of a good that is incurred by someone other than the producer.