GAT-B Arts, Humanities & Social Science Quantitative MCQs With Answers

Question # 1
Companies in the country of Jilsan sell transistor radios in the country of Kabana at a price that is below what it costs Kabanian companies to produce them. To help those Kabanian companies, the Kabanian legislature plans to set a minimum selling price for transistor radios imported into Kabana from Jilsan that is twelve percent greater than the average production costs for companies in Kabana.
Q:Which of the following, if true, most seriously threatens the success of the plan?

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