Which of the Following Is a Necessary Condition for Government

question 83

Multiple Choice

Which of the following is a necessary condition for government subsidies to influence a firm to choose an output level as if it were a Stackelberg leader?

• A) The subsidy must be announced before the firms choose output levels.
• B) The subsidy must be equal to the firm's marginal cost.
• C) The subsidy must be equal to the firm's rival's marginal cost.
• D) The firm does not have any fixed costs.

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Definitions:

Bank Fraud

The use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution.

Foreign Corrupt Practices Act

A United States federal law aimed at preventing the bribery of foreign government officials to assist in obtaining or retaining business.

Foreign Corrupt Practices Act

U.S. legislation aimed at preventing companies and their representatives from bribing foreign officials to gain a business advantage.

Bribery of Foreign Officials

The act of offering or giving anything of value to foreign government officials with the intent to influence their decisions in favor of the briber.