The "Unfair-Competition" Argument Might Be Cited by an American Who

question 208

Multiple Choice

The "unfair-competition" argument might be cited by an American who believes that

• A)almost every country has a comparative advantage, relative to the United States, in producing almost all goods.
• B)young industries should be protected against foreign competition until they become profitable.
• C)the American automobile industry should be protected against Japanese firms that are able to produce automobiles at relatively low cost.
• D)the French government's subsidies to French farmers justify restrictions on American imports of French agricultural products.

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Definitions:

Costs

The expenses or value sacrificed in the production or procurement of goods and services.

AVC

Average Variable Cost, which is the total variable costs divided by quantity of output produced.

ATC

Average Total Cost; the sum of all production costs divided by the quantity of output produced.

Perfectly Competitive Firm

A business operating in a market where there are many buyers and sellers, all selling identical products, with no barriers to entry or exit.