While Smoking Is on the Decline in the United States

question 197

Multiple Choice

While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking. It's because China is eager to protect its own tobacco industry which is a state monopoly. How would entry of foreign companies into the tobacco market affect the economic profit of the state monopoly?

• A) Its economic profits would decrease because of increased competition.
• B) Its economic profits would increase because of increased competition.
• C) Its economic profits would decrease because of rent seeking activity.
• D) Its economic profits would increase because of rent seeking activity.

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Definitions:

Kent Thiry

A business leader known for his role in transforming DaVita Inc., a healthcare company, significantly improving its performance and company culture.

Managerial Subsystems

Components of an organization's management system designed to support managers in planning, organizing, directing, and controlling.

Technical Subsystems

Components within an organization that focus specifically on the technical operations and functionalities required to meet its objectives.

Organizational Objectives

Specific, measurable goals that an organization aims to achieve within a set timeframe to fulfill its mission.