When Italy buys Boeing jets,the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S.buyer.

Question

Quizplus · Accepted Answer

If Italy produced its own jets, it would incur higher costs than buying from Boeing, so the price Italy pays would be lower than its own production cost. However, since Italy is not Boeing's only customer, the price Boeing receives from Italy would be higher than the price it could get from an additional US buyer, which means a lower price for Italy is still profitable for Boeing. Therefore, the correct choice is C.

When Italy Buys Boeing Jets,the Price Italy Pays Is ________