During a Stormy Meeting of Computer Software Firms, Several Company

question 179

Multiple Choice

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

• A) infant-industry argument.
• B) goal of equalising the nation's balance of payments.
• C) national self-sufficiency argument.
• D) goal of protecting the health of citizens.
• E) goals of retaliating for another nation's trade restrictions.

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Definitions:

Unit Variable Costs

Costs that vary directly with the production volume, per unit produced.

Break-even Point

The breakpoint where overall earnings from sales or manufacturing activities are equal to the total costs incurred, preventing any profit or loss.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no profit or loss.

Variable Costs

Costs that are directly correlated with the volume of production or sales.