The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 77

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Protection of an infant industry should be withdrawn once that industry:

• A)charges the same price as foreign competitors.
• B)goes public on the stock exchange.
• C)raises a large amount of sales revenue.
• D)achieves sufficient size to compete with foreign firms.
• E)earns enough profit as a result of the subsidies to remain in business.

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Definitions:

Production Inefficiencies

Occur when goods and services are not produced in the least costly way, often due to waste or misallocation of resources.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, highlighting the trade-offs in production choices.

Fully Employed

A situation in which all available labor resources are being used in the most economically efficient way.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs and technology, assuming efficient use of resources.