Suppose Igrushka estimates the demand for wooden dolls in France as 75,000 toys per year. Based on the curves AVC France and ATC Subsidiary, what is Igrushka's best strategy? O. Reassess the market potential in France. O License production technology to a French firm. O Establish a subsidiary factory in France. Suppose that Igrushka found a way to acquire capital at a lower cost than that paid by the French firm. Which of the following best describes how Igrushka's decision making may change? O The decision to license instead of forming a subsidiary will occur at a higher level of output. O The decision to form a subsidiary instead of licensing will occur at a lower level of output. O The subsidiary becomes completely inefficient at a lower level of output.

Suppose Igrushka estimates the demand for wooden dolls in France as 75,000 toys per year. Based on the curves AVC France and ATC Subsidiary, what is Igrushka's best strategy? O. Reassess the market potential in France. O License production technology to a French firm. O Establish a subsidiary factory in France. Suppose that Igrushka found a way to acquire capital at a lower cost than that paid by the French firm. Which of the following best describes how Igrushka's decision making may change? O The decision to license instead of forming a subsidiary will occur at a higher level of output. O The decision to form a subsidiary instead of licensing will occur at a lower level of output. O The subsidiary becomes completely inefficient at a lower level of output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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