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(Figure: a Firm's Production with and Without Offshoring II) If

Question 65

Multiple Choice

(Figure: A Firm's Production With and Without Offshoring II) If the price of R&D decreases, then it is likely that the home country: (Figure: A Firm's Production With and Without Offshoring II)  If the price of R&D decreases, then it is likely that the home country:   A)  could see a decline in the amount of output produced. B)  will see a loss in comparative advantage in R&D. C)  could see a decline in the amount of output produced and a loss in comparative advantage in R&D. D)  could see an increase in the amount of output produced.


A) could see a decline in the amount of output produced.
B) will see a loss in comparative advantage in R&D.
C) could see a decline in the amount of output produced and a loss in comparative advantage in R&D.
D) could see an increase in the amount of output produced.

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