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The Williamson tradeoff model is a theoretical model in the economics of industrial organization which emphasizes the tradeoff associated with horizontal mergers between gains resulting from lower costs of production and the losses associated with higher prices due to greater degree of monopoly power.
In economics a trade-off is expressed in terms of the opportunity cost of a particular choice, which is the loss of the most preferred alternative given up. [2] A tradeoff, then, involves a sacrifice that must be made to obtain a certain product, service, or experience, rather than others that could be made or obtained using the same required resources.
Researchers in political economy have viewed the trade-off between military and consumer spending as a useful predictor of election success. [1] In this example, a nation has to choose between two options when spending its finite resources. It may buy either guns (invest in defense/military) or butter (invest in production of goods), or a ...
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choices. The primary example of such information-based legislation is the Nutrition Labeling and Education Act (NLEA), which was implemented in 1994 (United States Food and Drug Administration) and required that consumers have access to consistent nutritional information for packaged foods.
For example, if similar cloth for sale in America cost $4 for a version imported from Britain (including additional shipping, etc.) and $4 for a version originating in the United States, the American government may wish to impose a protective tariff to make the price of British cloth higher for Americans. [3]
HGTV home renovation stars Jonathan and Drew Scott – best known as the Property Brothers – are fearful that Trump’s proposed tariffs could send construction costs soaring. The brothers ...