The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4
In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-According to Figure 15.4,one of the possible outcomes of such offshoring is that:
A) the price of the good in question rises in the U.S.market.
B) the demand for Indian labor declines.
C) the demand for U.S.workers increase.
D) the price of the good in question rises in the Indian market.
E) the Indian workers replace the U.S.workers.
Correct Answer:
Verified
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