Suppose Igrushka estimates the demand for wooden dolls in France as 75,000 toys per year. Based on the curves AVC France and ATC Subsidiary, what is Igrushka's best strategy? O. Reassess the market potential in France. O License production technology to a French firm. O Establish a subsidiary factory in France. Suppose that Igrushka found a way to acquire capital at a lower cost than that paid by the French firm. Which of the following best describes how Igrushka's decision making may change? O The decision to license instead of forming a subsidiary will occur at a higher level of output. O The decision to form a subsidiary instead of licensing will occur at a lower level of output. O The subsidiary becomes completely inefficient at a lower level of output.

Suppose Igrushka estimates the demand for wooden dolls in France as 75,000 toys per year. Based on the curves AVC France and ATC Subsidiary, what is Igrushka's best strategy? O. Reassess the market potential in France. O License production technology to a French firm. O Establish a subsidiary factory in France. Suppose that Igrushka found a way to acquire capital at a lower cost than that paid by the French firm. Which of the following best describes how Igrushka's decision making may change? O The decision to license instead of forming a subsidiary will occur at a higher level of output. O The decision to form a subsidiary instead of licensing will occur at a lower level of output. O The subsidiary becomes completely inefficient at a lower level of output.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter25: Government And Product Markets: Antitrust And Regulation

Section: Chapter Questions

Problem 12QP

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