apple assembles most iphones in china and india because the lower wages earned by chinese and indian workers…

apple assembles most iphones in china and india because the lower wages earned by chinese and indian workers and their experience in electronics manufacturing reduce the costs of assembling iphones. this is an example of apple reacting to which of the three key economic ideas?\na. optimal decisions are made at the margin.\nb. firms attempt to maximize revenues.\nc. people respond to economic incentives.\nd. people are rational.

apple assembles most iphones in china and india because the lower wages earned by chinese and indian workers and their experience in electronics manufacturing reduce the costs of assembling iphones. this is an example of apple reacting to which of the three key economic ideas?\na. optimal decisions are made at the margin.\nb. firms attempt to maximize revenues.\nc. people respond to economic incentives.\nd. people are rational.

Answer

Brief Explanations:

Apple assembles iPhones in China and India due to lower - wage incentives and manufacturing experience, which is an example of a firm responding to economic incentives. Optimal decisions at the margin refer to making decisions by comparing marginal costs and benefits. Maximizing revenues is about increasing income, not cost - reduction. People being rational is a broader concept. Here, the key is Apple's response to cost - reducing incentives.

Answer:

C. People respond to economic incentives.