The cost of producing rice in country Q is 10 percent less than the cost of producing rice in country Y. Even after transportation fees and tariff charges are added. it is still cheaper for a company to import rice form country Q to country Y than to produce rice in country Y? The statements above , if true , best support which of the following assertions?

A Labor costs in country Q are 10 percent below those in country Y .
B Importing rice from country Q to country Y is less than 10 percent of the cost of manufacturing rice in country Q .
C The fee for transporting rice from country Q to country Y is more than 10 percent of the cost of manufacturing rice in country Q .
D It takes 10 percent less time to manufacture rice in country Q than it does in country Y.

Correct Answer: The fee for transporting rice from country Q to country Y is more than 10 percent of the cost of manufacturing rice in country Q .

Bissoy MCQ

Related Questions

The cost of producing Garment in Country Q is ten percent less than the cost of producing Garment in Country Y, Even after transportation fees and tariff charges are added,it is still cheaper for a company to import Garment from Country Q to Country Y than to produce Garment in Country Y". The statement above, if true, best support which of the following assertions?

Next steps