If the infant industry argument is used to protect an industry that has already matured, then
A) consumers lose because they will pay a price for a product that is above the world price.
B) consumers lose because they will pay a price for a product, which is less than the world price.
C) stockholders lose because the firm cannot compete with other firms.
D) no one loses.
A
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Suppose the elasticity of demand for a product is 0 and elasticity of supply is 1. If the government imposes a tax on the product, then
A) buyers and sellers pay exactly the same share of the tax. B) buyers pay all of the tax. C) sellers pay all of the tax. D) buyers pay a smaller share of the tax than do sellers, but both buyers and sellers pay some of the tax. E) because the elasticity of demand is zero, the government collects no revenue from this tax.
Why does the opportunity cost of producing a good rise as more resources are devoted to producing that good?
What will be an ideal response?
To counter parents' concerns about fast foods and childhood obesity, McDonalds considered:
A) a variety of menu items such as milk shakes and candy. B) a variety of menu items such as apple slices, fruit juices, peanut butter and jelly sandwiches, and carrot sticks. C) not changing the menu. D) all of the above.
The town of Marshall's Boy Scout Troop 1099 decreased car parking prices at the Celebrate Marshall Festival and found they made higher profits. This likely occurred because
a. marginal cost was equal to marginal revenue b. marginal revenue was higher than marginal cost c. marginal revenue was less than marginal cost d. demand was inelastic e. marginal revenue was increasing