An industry is characterized by scale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice
A) the two countries must engage in international trade with each other.
B) each country's marginal cost must equal that of the other country.
C) the marginal cost of this industry must equal marginal revenue in the other.
D) the monopoly must lower prices in order to sell more.
E) they must combine to become a multinational corporation.
A
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Which of the following policies could be used to move the open-access equilibrium (OAE) of a common property fishery to the maximum economic yield (MEY)?
a. Quotas b. Individual tradeable quotas or permits c. License fees d. All of the above. e. None of the above.
A perfectly competitive firm maximizes profit when:
a. its marginal revenue is equal to its marginal cost. b. its marginal revenue is greater than its marginal cost. c. its marginal cost is negative. d. its marginal cost is greater than its marginal revenue. e. its marginal cost is minimum.