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A Firm Maximizes Profits by Charging a Lower Price to Foreign

Question 2

Multiple Choice

A firm maximizes profits by charging a lower price to foreign buyers if:


A) it has a greater monopoly power in the foreign market than it has in its home market.
B) the foreign demand for its good is more elastic than the domestic demand.
C) the buyers in the home country have access to cheaper imports from the rest of the world.
D) the size of the foreign market is much larger than the home market.

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