A. they can generate more advertising
B. they can please top management
C. they can gain tax advantages
D. they can set lower prices that that result in greater sales and profits
Related Mcqs:
- If we consider the impact on both consumers and producers, then protection of the steel industry is ?
A. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located
B. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania
C. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
D. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A. £35
B. £15
C. £30
D. £60 - Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?
A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. tradable pollution permits, Pigouvian taxes, command-and-control policies
C. tradable pollution permits command-and-control policies, Pigovian taxes.
D. command-and-control policies, tradable pollution permits, Pigovian taxes.
E. They would all rank equally high because the same result can be obtained from any one of the policies - A primary reason why nations conduct international trade is because ?
A. Some nations prefer to produce one thing while others produce another
B. Resources are not equally distributed to all trading nations
C. Trade enhances opportunities to accumulate profits
D. interest rates are not identical in all trading nations - A primary reason that explains the appreciation in the value of U.S dollar would be ?
A. large trade surpluses for the United States
B. high inflation rates in the United States
C. lack of investor confidence in U.S money policy
D. high interest rates in the United States - When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
A. greater than average cost, greater than average cost
B. less than average cost, greater than average cost
C. less than average cost, less than average cost
D. greater than average cost, less than average cost - When producers, wholesalers, and retailers act as a unified system they comprise a ?
A. conventional marketing system
B. power-based marketing system
C. horizontal marketing system
D. vertical marketing system - What is called the advocacy of protecting domestic producers by impeding or limiting the importation of foreign goods and services ?
A. Domestication
B. Protectionism
C. Localization
D. National interest - According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?
A. scientific tariff argument
B. infant industry argument
C. beggar they neighbor argument
D. foreign dumping argument - Domestic producers gain ________ because on the tariff?
A. $50,000
B. $75,000
C. $120,000
D. $150,000
