The infant industry argument has a normative economic basis because
A) clearly, all industries need to be protected.
B) protected industries are selected on a factual basis.
C) the government must decide which industries should be protected.
D) political corruption is the only deciding factor.
C
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In the long run, firms in both monopolistically competitive markets and perfectly competitive markets earn zero economic profits, but unlike perfectly competitive firms in the long run, monopolistically competitive firms
A) charge a price that is equal to marginal cost. B) charge a price that is equal to average total cost. C) do not produce at minimum average total cost. D) charge a price that is greater than average revenue.
The Embargo Act (1807):
a. had a devastating effect on U.S. manufacturing. b. led to increases in U.S. exports and per capita income. c. increased U.S. imports, but decreased U.S. exports. d. prohibited U.S. ships from trading with all foreign ports. e. All of the above.
Which of the following is a situation in which all countries can benefit, even if some benefit more than others?
A. Near equivalent-result game B. Positive-sum game C. Balanced scorecard D. Zero-sum game E. Economic progression
Firms in an oligopoly are said to be interdependent. What does this mean?
What will be an ideal response?