Governments sometimes subsidize domestic industries. When this occurs
A) the governments also impose tariffs on imports to protect the industries even more.
B) the subsidized industries have an advantage in international markets relative to non-subsidized industries.
C) firms cannot be guilty of dumping because their prices are not below their costs.
D) the subsidized industries sell less in international markets because it is more profitable to sell domestically.

Question

Quizplus · Accepted Answer

Subsidized industries have lower production costs, which gives them an advantage in international markets. They can sell their products at a lower price than non-subsidized industries, making them more competitive in the global market.

Governments Sometimes Subsidize Domestic Industries. When This Occurs