If the Infant Industry Argument Is Used to Protect an Industry

question 18

Multiple Choice

If the infant industry argument is used to protect an industry that has already matured, then

• A) consumers lose because they will pay a price for a product that is above the world price.
• B) consumers lose because they will pay a price for a product, which is less than the world price.
• C) stockholders lose because the firm cannot compete with other firms.
• D) no one loses.

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Definitions:

Revocation

The process of formally withdrawing, cancelling, or annulling a decision, offer, or legal power.

Valid Contract

An agreement between two or more parties that is enforceable by law, meeting essential elements such as offer, acceptance, consideration, and legal purpose.

Cadillac

A luxury vehicle brand known for its high level of craftsmanship, comfort, and prestige.

Quantum Meruit

A legal principle where a person is paid for the value of the services provided, even in the absence of a contract, based on the reasonable value of services rendered.