In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of
A) the "multiplier" effect of government expenditures.
B) the military-industrial complex.
C) the forward and backward linkage effects of certain industries.
D) the deterrent effect of the subsidy on foreign competition.
E) the economies of scale once the company enters the market.
D
Economics
You might also like to view...
Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been
A) unaffected. B) larger by $50 billion. C) smaller by $50 billion. D) $100 billion.
Economics
Refer to Table 8-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?
Economics