"Protection" Is Designed to Help

question 101

Multiple Choice

"Protection" is designed to help

• A)firms whose relative inefficiency does not permit successful competition with imports.
• B)workers who have very high productivity, and cannot survive against low-paid foreign workers.
• C)government that needs revenue from tariffs and quotas to cover government spending.
• D)firms that are highly efficient and cannot survive against low-price foreign imports.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Downward-Sloping Demand

A concept in economics that illustrates how demand for a good or service decreases as the price increases, assuming all other factors remain constant.

Monopoly

A monopoly is a market structure characterized by a single seller dominating the market, facing no competition, which can influence prices and control the supply of goods or services.

Monopolistic Competition

is a market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on quality, price, and marketing.