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Suppose Several United States Software Design Companies Compete with Each

Question 74

Multiple Choice

Suppose several United States software design companies compete with each other in a perfectly competitive environment.If one company decides to move some of its offices to a low-wage country in order to reduce operating costs:


A) the other companies will still be able to remain profitable while operating solely in the United States.
B) the company that moves to the lower-wage country will earn positive economic profits in the long run because it will keep a cost advantage.
C) the other companies will also move to the low wage country in order to remain in the industry.
D) the first company to move will charge a lower price than the companies remaining in the United States.

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