Which of the Following Is an Infant-Industry Argument in Favor

question 104

Multiple Choice

Which of the following is an infant-industry argument in favor of restrictions on foreign trade?

• A) Foreign producers must be stopped from selling their products in this country below cost of production.
• B) Domestic workers must be protected from the lower wages paid in foreign countries.
• C) The nation's security demands we ensure an adequate domestic supply capacity of certain products.
• D) Industries in the early stages of development must be protected from more mature producers.

---

Definitions:

Marginal Revenue

The rise in income generated by selling an extra unit of a product or service.

Maximizing Profit

The process of making business decisions that increase a firm's earnings to its highest possible level.

Total Revenue

The total income a business receives from selling its goods or services, calculated by multiplying the price per unit by the number of units sold.

Competitive Firm

A company that operates in a market with many other firms, selling similar or identical products or services, where no single firm can influence market prices.