To Predict Which Activities a U

question 120

Multiple Choice

To predict which activities a U.S. firm will find profitable to offshore, we must assume that it can use relatively lower-cost labor in a foreign nation. This is usually _____ labor.

• A) skilled
• B) unskilled
• C) economical
• D) unnecessary

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Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, including labor and material but excluding fixed costs.

Unit Selling Price

The price at which an individual unit of product is sold to customers.

Percentage

A way of expressing a number as a fraction of 100, denoted using the symbol "%".

Unit Variable Cost

The cost attributed to each unit produced, varying with the level of output.