A major difficulty with the infant industry argument for protection is that
A) government revenue will fall with a tariff.
B) it requires the nation to fall into the large country case for tariff protection.
C) effective rates of protection are usually greater than nominal rates.
D) the measurement of production externalities is difficult and uncertain.
D
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Suppose a monopoly produces film and cameras. Consumers demand pictures, which require film and one camera
Two different types of consumers have the following demand for film, qA = 100 - 10p and qB = 80 - 10p. The monopoly cannot price discriminate in the market for film or the market for cameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of $1 per roll. What price will the monopoly set for film and for cameras?
The law of diminishing marginal utility does not apply to goods that a person really enjoys.
Answer the following statement true (T) or false (F)
MC = AVC and MC = ATC at points at which
A. the AVC and ATC curves are at their respective minimums. B. the distance between the ATC and AVC curves is at its maximum. C. the distance between the ATC and AVC curves is at its minimum. D. the AVC and ATC curves are at their respective maximums.
Eliminating a tariff on running shoes would ________ businesses that sell running shoes and ________ consumers who purchase them
A) benefit; benefit B) benefit; harm C) harm; benefit D) harm; harm