A Foreign Company That Enjoys High Prices and High Profits

question 94

True/False

A foreign company that enjoys high prices and high profits at home as a result of trade barriers against imports can use those profits to sell at much lower prices in foreign markets in order to build market share at the expense of competitors with open home markets. This is known as monopoly pricing.

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Definitions:

Suffix

A morpheme added at the end of a word to form a derivative or to alter its meaning.

Happy

A state of well-being and contentment characterized by emotions ranging from contentment to intense joy.

Suffix

A morpheme added at the end of a word to form a derivative or alter its grammatical function.

Continue

To proceed with an action or process without interruption.