The Comparable Access Argument for Import Restrictions Is a More

question 95

True/False

The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.

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Definitions:

ATC

Average Total Cost, which is the total cost per unit of output produced, calculated by adding all production costs and dividing by the number of units produced.

Marginal Output

The increase in output resulting from a one-unit increase in the level of input, while holding other inputs constant.

Variable Cost

Expenses that change in proportion to the activity or production level of a business; for example, costs for raw materials that increase as more goods are produced.

Rent

A payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or another property.