Suppose Several United States Software Design Companies Compete with Each

Multiple Choice

Suppose several United States software design companies compete with each other in a perfectly competitive environment. If one company decides to move some of its offices to a low-wage country in order to reduce operating costs, then:

A) the other companies will still be able to remain profitable while operating solely in the United States.
B) the company that moves to the low-wage country will earn a positive economic profit in the long run.
C) other companies will have an incentive move to the low-wage country in order to remain competitive.
D) the company that moves to the low-wage country will soon return to the United States.