International price discrimination for a good is possible if
A) goods are sold through the gray market.
B) the price difference between two countries is greater than the transaction costs in arbitrage.
C) the price difference between two countries is less than the transaction costs in arbitrage.
D) None of the above.
C
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According to the Law of Supply,
a. price and quantity supplied are positively related, c.p. b. firms produce less output as the price of the product rises, ceteris paribus c. marginal cost rises as the firm contracts production d. there is an inverse relationship between output and price, holding all else constant
Refer to above figure. The lowest specific tariff which would be considered prohibitive is ________
Fill in the blank(s) with correct word
An externality is any activity for which an individual firm or consumer does not take into account all
A) of the ramifications of its actions on others. B) associated costs. C) associated benefits. D) associated costs and benefits.
When the economy is on operating beyond the natural rate of real output, efforts to bring inflation down with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; less b. More; more c. Less; less d. Less; more