The Most Efficient Way to Encourage the Growth of an Infant-Industry

question 91

Multiple Choice

The most efficient way to encourage the growth of an infant-industry is through

• A)a voluntary export restraint.
• B)a tariff.
• C)a subsidy.
• D)an import quota.
• E)none of the above

Analyze the demand, marginal revenue, marginal cost, and average total cost curves to determine the profit-maximizing quantity and price.

Understand how entry and exit of firms in monopolistically competitive markets affect the market structure and individual firms.

Identify the characteristics and outcomes of long-run equilibrium in monopolistic competition, including the zero economic profit condition.

Explain the concept of excess capacity in monopolistically competitive markets.

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Definitions:

Outputs

The final products, services, or results generated by a system, process, or project.

Foundry

A workshop or factory for casting metal, where molten metal is poured into molds to create various shapes.

Manhole Covers

Heavy removable plates placed over the openings of manholes to prevent accidental falls into them and to block unauthorized access to the municipal services below.

Productivity

A measure of efficiency that calculates the amount of output produced per unit of input.