Because Boeing did not enter the market for superjumbo aircraft, it is:
A) possible that Airbus' profits will be large enough to offset subsidy costs.
B) unlikely that Airbus' profits will be large enough to offset subsidy costs.
C) unlikely that Boeings' profits on other aircraft will not offset subsidy costs.
D) possible that Airbus' profits on other aircraft will offset superjumbo subsidy costs.

Question

Quizplus · Accepted Answer

Airbus is the only manufacturer of superjumbo aircraft, so it has no competition in this market. This means that Airbus is likely to make large profits on the sale of superjumbo aircraft, which could offset the costs of the subsidies it received to develop and produce the aircraft.

Because Boeing Did Not Enter the Market for Superjumbo Aircraft