The costs identified with opening trade are called:
A) short-run costs.
B) adjustment costs.
C) variable costs.
D) overhead costs.

Question

Quizplus · Accepted Answer

The costs identified with opening trade are called adjustment costs. These are the costs that a firm incurs as it tries to adapt to new market conditions or changes in the trade policy. They can include costs related to retooling factories or retraining workers, as well as costs associated with getting new contracts or finding new suppliers. These costs can be significant, especially for firms that are heavily reliant on trade.

The Costs Identified with Opening Trade Are Called