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:

Total Manufacturing Cost

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in producing products.

Machine-Hours

A measure of production time, referring to the number of hours a machine is operated in the manufacturing process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs and activity levels.

Manufacturing Departments

The sections of a manufacturing organization dedicated to specific production activities or processes.