What Is Most Likely to Happen When Firms in an Import-Competing

question 8

Multiple Choice

What is most likely to happen when firms in an import-competing infant industry are offered subsidies?

• A)The firms will suffer from diseconomies of scale.
• B)The firms will be able to sustain only if they charge a higher price than the foreign firms.
• C)The firms will be able to charge a price equal to the world price and still earn a profit.
• D)The firms will face a perfectly inelastic demand curve.

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Definitions:

First Great Awakening

A series of Christian revivals that swept through the British American colonies in the mid-18th century, marked by a surge in evangelical fervor and the promotion of a personal, emotional connection with God.

Religious Crisis

A period of turmoil, conflict, or change within a religion or between different religions, often leading to reformations, schisms, or increased hostilities.

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Large agricultural estates located in the Chesapeake region, primarily Virginia and Maryland, where tobacco was the main cash crop during colonial times.

Slaves

Individuals who are legally owned by others and compelled to work without compensation.