Companies in the country of Kollontay can sell semiconductors in the country of Valdivia at a price that is below the cost to Valdivian companies of producing them. To help those Valdivian companies, the Valdivian legislature plans to set a minimum selling price in Valdivia for semiconductors manufactured in Kollontay that is ten percent greater than the average production costs for companies in Valdivia.
Which of the following, if true, most seriously threatens the success of the plan?
A. The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year.
B. Valdivia is not the only country where companies in Kollontay currently sell semiconductors.
C. Some Valdivian companies that sell semiconductors have announced that they plan to decrease their price for semiconductors.
D. The government of Kollontay will also set a minimum price for selling semiconductors in that country.
E. Emerging companies in countries other than Kollontay will still be able to sell semiconductors in Valdivia at a price below the cost to Valdivian companies to manufacture them.
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