An assumption behind the infant industry argument for tariff protection is that
A) foreign competitors are selling output below average cost.
B) the domestic industry will be facing an upward adjustment in its average cost.
C) the domestic industry will eventually gain comparative advantage in producing the good.
D) the market needs additional competition to satisfy consumer demand.
C
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Think about the following news items and label each as involving a what, how, or for whom question:
What will be an ideal response?
Which of the following is not an example of a two-part pricing scheme in the context of price discrimination?
A) A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys. B) A firm, e.g., Sam's Club or Costco, charges a membership fee that is separate from the price paid for items purchased from the firm. C) A customer pays a $10 cover charge to enter a bar and then pays $5 for each beverage. D) An amusement park charges an admission fee and then charges a per unit price for each of the rides offered by the park.
The per se rule would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws
a. True b. False Indicate whether the statement is true or false
Interventionist economists
a. often advocate less interference in the private sector b. believe the economy should be left alone c. rely exclusively on peoples' expectations of future growth to bring the economy to long-run equilibrium d. advocate that government and the Fed correct what they believe ails the economy e. believe that the Federal Reserve should either remain independent or be eliminated