What is a consequence of increasing marginal costs of producing digital music players in Japan?
A)Japan will not export digital music players.
B)Japan will stop short of complete specialisation in the production of digital music players.
C)Japan will import digital music players from countries that don't experience increasing marginal costs.
D)Japan will likely impose trade restrictions on imported digital music players.

Question

Quizplus · Accepted Answer

Increasing marginal costs mean that it becomes more expensive to produce additional units of digital music players. This can lead to a decrease in the competitiveness of Japanese producers and a shift towards producing other products with lower costs. As a result, Japan may not specialize completely in the production of digital music players, but rather diversify its production.

What Is a Consequence of Increasing Marginal Costs of Producing