ABC Automobiles Has Heard That Someone Is Smuggling Their Cars

question 10

Multiple Choice

ABC Automobiles has heard that someone is smuggling their cars into a Latin American country where there are no tariffs or quotas on automobiles.What advice would you give World Cigarettes?

• A)Due to their size and weight,automobiles are rarely smuggled.
• B)Organized crime could be involved.
• C)Latin American governments encourage smugglers.
• D)Smuggling will not occur in the absence of tariffs or quotas.

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Definitions:

Monopolist

An entity or company that has exclusive control over the market for a particular good or service, facing no competition.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Marginal Cost

The price of making one more unit of a certain product.

Government Regulation

Rules or directives made and maintained by a government to regulate behavior or enforce standards in various fields.