Explain the infant industry argument.
What will be an ideal response?
The infant industry argument is an argument for tariff protection for a domestic industry that is relatively new. If there are economies of scale or benefits from experience, the industry may not have a chance to develop and secure either experience or economies of scale if they face competition from established foreign firms. The argument is that after a period of time, the industry would be able to compete without tariff protection.
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List five factors that will cause the MP curve to shift. Explain what needs to happen to each of these factors to cause the MP curve to shift upward and to shift downward
What will be an ideal response?
What is the relationship between food stamps and cash transfer payments? When, if ever, are they equivalent? When, if ever, might they diverge?
What will be an ideal response?
To achieve an optimal factor mix for its current output the firm should employ more:
A firm operating in purely competitive product and resource markets uses three resources, A, B, and C, whose prices and productivities at current output levels are given below.
A. A and B and less C
B. A and B and C
C. A and C and less B
D. B and less A and C
A Treasury bill with an original maturity of six months currently sells for $972.58. The bill was issued 30 days ago. An investor who purchases this bill today would have a bond equivalent yield of __________ percent
A) 6.49 B) 6.77 C) 5.58 D) 5.65