Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?
Correct answer: C. continuously improve their products at home
- A. lower prices
- B. increase promotion both at home and abroad
- C. continuously improve their products at home
- D. join into cartels at home
Explanation
Continuous product improvement helps firms compete internationally through better quality and customer value rather than relying on government protection. Lowering prices may not be sustainable, and cartels restrict competition.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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