Firms are subject to political costs when:

Name: Firms are subject to political costs when:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms that are highly visible and are in the media or other arenas, often as a result of high profits, are subject to political costs. This is because they may attract the attention of regulatory and government authorities who may view them as having excessive profits or abusing market power. As a result, firms may face increased scrutiny, regulation, or taxation to reduce their political costs.

Firms Are Subject to Political Costs When