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In a diversified company,a business subsidiary has more competitive advantage potential when:
Government Purchases
Expenditures made by the government for goods and services that affect the economy, including investments and spending on infrastructure, healthcare, and education.
Producer Surplus
The difference between what producers are willing to accept for a good or service versus what they actually receive, due to market price.
Price Floor
A government or regulatory-imposed minimum price for a particular good or service, above the equilibrium price.
Government Purchases
Expenditures by government entities on goods and services that are part of government consumption or investment.
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