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A Foreign Company Partially Owned by the Foreign Government,manufactures Televisions

question 7

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A foreign company partially owned by the foreign government,manufactures televisions in the foreign country.The cost to the company for the manufacture of the product in the U.S.is the equivalent of $100.Because of excess production,the firm exports 5,000 sets to the United States where they are sold for $120 each.If the nearest rival U.S.-made set sells for $150,the action of the company:

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Definitions:

Average Rate

A means of determining the central or typical value of a set of numbers, calculated by dividing the sum of the values by the number of values.

Federal Spending

The total amount of money expended by the federal government on various programs, services, and obligations, including defense, education, and social welfare.

State and Local

Pertains to the government entities and authorities that operate below the federal level, including states, counties, cities, and towns.

Marginal Tax Rate

The percentage of tax applied to the final dollar of income, signifying the tax paid on any extra dollar earned.

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