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Economics
MEDIUM
ENGLISH
Economics
The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A
R&D generating welfare improved technology
Option A
B
development of more productive machinery
Option B
C
new work rules promoting workers efficiency
Option C
lower wages extracted from workers
Correct answer
Correct answer: D
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