Which of the Following Is Not a Reason to Restrict

question 215

Multiple Choice

Which of the following is not a reason to restrict trade?

• A)To increase consumer welfare
• B)To promote certain key industries
• C)To prevent predatory behavior on the part of foreign firms
• D)To retaliate against another country
• E)To give a new industry time to grow and become competitive

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Definitions:

Payoffs

The outcomes or rewards received as a result of choosing a particular strategy or course of action.

Dominant Firm Model

A market structure in which one firm has a major share of total sales and sets the price for the whole market, influencing the behavior of smaller competitors.

Fringe Firms

Fringe firms are smaller companies in a market that compete alongside the larger, dominant firms, typically having a minimal market share.

Competitive Firms

Companies that operate in a market where no single producer or consumer has the market power to influence prices significantly.