Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus
-Referring to Figure 6.1, the total cost of the Airbus subsidy to the European taxpayer equals

Question

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus 
-Referring to Figure 6.1, the total cost of the Airbus subsidy to the European taxpayer equals

Quizplus · Accepted Answer

According to Figure 6.1, the total cost of the Airbus subsidy to the European taxpayer is €22 million, which is approximately $24 million (as of the time of writing this answer). Therefore, the correct choice is (C) $24 million.