Which of the Following Is a Justification for Infant Industry

question 174

Multiple Choice

Which of the following is a justification for infant industry protection?

• A)The firm's learning must shift its average cost curve down over time so that it becomes competitive at world prices.
• B)The firm's output must increase so that it moves down along its average cost curve over time and becomes competitive at world
• Prices.
• C)The firm's total cost curve must shift leftward over time so that it becomes competitive at world prices.
• D)The firm's learning allows it to produce more output and take advantage of increasing returns to scale.

---

Definitions:

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's gross domestic product.

Imports

Items or services acquired from overseas to be sold within a country.

Balanced Trade

A situation in which the value of a country's exports equals the value of its imports over a certain period.

Net Exports

The value of a country's exports minus its imports; a positive number indicates a trade surplus, while a negative one indicates a trade deficit.