Ceteris paribus, which of the following statements describes a market when transportation costs are high relative to selling prices?
A) There are numerous markets that are geographically limited.
B) There are few markets that are geographically limited.
C) There are numerous markets that are global in scope.
D) There are few markets that are global in scope.

Question

Quizplus · Accepted Answer

When transportation costs are high relative to selling prices, it becomes more expensive to transport goods to distant markets. This leads to a situation where there are numerous markets that are geographically limited, as it is not cost-effective to transport goods over long distances. Therefore, option A is the best choice.

Ceteris Paribus, Which of the Following Statements Describes a Market