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Which of the Following Is a Problem of Subsidizing an Industry

Question 31

Multiple Choice

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?


A) All monopolies create deadweight losses.
B) A nation may pick the wrong industry to subsidize.
C) If both the domestic firm and the foreign firm enter the market, nations might end up subsidizing two money losing firms.
D) Both B and C are correct.

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