It costs a computer manufacturer $1,000 to produce a personal computer. This manufacturer sells these computers abroad for $600. This is an example of
A. a negative tariff.
B. dumping.
C. export subsidy.
D. a trade-related economy of scale.
Answer: B
You might also like to view...
In the above figure, if the market price is $100 per ton, then the firm's producer surplus on the second ton of wheat is
A) $25. B) $50. C) $75. D) $100.
Which of the following is NOT a reason for the slope of the aggregate demand curve?
A. the interest rate effect B. the substitution effect C. the open-economy effect D. the real balance effect
Refer to the diagram. At disposable income level D, consumption is equal to:
A. CD.
B. D minus CD.
C. CD/D.
D. CD plus BD.
Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars. B) people would substitute buses for taxis. C) taxis are not a necessity of life. D) the cost of owning a license would eat up the potential profits from operating a taxi. E) the demand would fall as taxi fares rose.