Asked by Layton Bicanovsky on Jun 22, 2024
Verified
Related to the Economics in Practice on page 6: According to the Economics in Practice, a majority of the $10 retail value of the Barbie doll
A) is needed to pay for the cost of the Taiwanese plastic used to make the dolls.
B) pays for the Chinese labor used to assemble the doll.
C) is captured in the United States.
D) goes to the Japanese manufacturer of the hair which is used for the dolls.
Retail Value
the price at which a product is sold to the end consumer in a retail market.
Barbie Doll
A popular fashion doll brand created by the American toy company Mattel, Inc., known for its diverse range of dolls and accessories.
- Illustrate how the concept of opportunity cost influences decisions on outsourcing in the production and service industries.
Verified Answer
NC
Nicole CulbreathJun 28, 2024
Final Answer :
C
Explanation :
The majority of the $10 retail value of the Barbie doll is captured in the United States, which includes profits, marketing, and licensing fees associated with the doll. This highlights the economic concept of value addition, where the final retail price encompasses more than just the direct costs of materials and labor.
Learning Objectives
- Illustrate how the concept of opportunity cost influences decisions on outsourcing in the production and service industries.
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