Which of the Following Statements Most Likely Undermines the Infant-Industry

question 89

Multiple Choice

Which of the following statements most likely undermines the infant-industry argument?

• A)Total unit costs decrease through economies of scale.
• B)High tariffs to prevent foreign competition increase government revenues in the protected country.
• C)Domestic entrepreneurs need assistance to compete in industries with high entry barriers.
• D)Experience of operating over time triggers higher productivity and global competitiveness.

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Definitions:

IPOs

Initial Public Offerings, the process by which a private company offers shares to the public in a new stock issuance.

ESOPs

Employee Stock Ownership Plans, which are programs that provide a company's workforce with ownership interest in the company through stocks.

Harvest Stage

The phase in a business or product lifecycle where maximum benefits and profits are extracted, often after the growth phase has plateaued.

Risk Averse

Refers to the preference of individuals or organizations to avoid risk, choosing the option with the least uncertainty.