A German-made Montblanc fountain pen retailing for $250 in the U.S. is a luxury good that represents an exception to which general principle?
A) The smaller the denominator in the value equation, the higher the overall value created.
B) Japanese companies exploited economies of scale to become world-class competitors.
C) The world is becoming more homogeneous.
D) Higher product development costs are a driving force behind globalization.
E) Luxury goods are taxed at a higher rate.
Answer: A)The smaller the denominator in the value equation, the higher the overall value created.