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:

Discounting

The process of determining the present value of a payment or series of payments that will be made in the future, often used in finance to compare investment opportunities.

Accumulate

To gather or collect items over time, often for accounting or quantitative measurement purposes.

Invested at

Typically implies allocating resources, such as time or money, into a venture, asset, or project with the expectation of receiving future returns.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the interest rate that makes the net present value of all cash flows equal to zero.