(Choose 1 answer)
(4361) In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of
A. the military-industrial complex.
B. the "multiplier" effect of government expenditures.
C. the economies of scale once the company enters the market
D. the forward and backward linkage effects of certain industries.
E. the deterrent effect of the subsidy on foreign competition.
wi
Exit 3
