Question

One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing preference by U.S. consumers for products made in the United States. If buyers have increased their preference for domestically produced goods and manufacturers believe they can increase revenues by supplying more of these​ goods, firms are following which key economic idea when they return production to the United​ States?
A. The market system relies on the principle of voluntary exchange.
B. Optimal decisions are made at the margin.
C. People are rational.
D. People respond to economic incentives

Answer 1

Answer: People are rational

Explanation:

The firm's are following the economic idea of rationality when they return production to the United​ States.

In Economics, the rationality concept implies that consumers will make a choice based on what they like and what beings them happiness.

Since the United States consumers have an increasing preference for products made in the United States, then the best thing is for the manufacturing companies to move production from overseas locations back to the United States.

Individuals are always rational and will do everything that they think pleases them.ane what they want so it's for the manufacturers to know what they want and give them that in order to help increase their revenue.