Assuming a Firm Would Not Survive Without Protection, What Should

question 163

Multiple Choice

Assuming a firm would not survive without protection, what should the government do if the present value of the profits and value added from operating an infant industry firm exceed the deadweight loss of imposing protection?

• A) It should impose the tariff-the gains exceed the losses.
• B) It should not impose the tariff-the losses exceed the gains.
• C) If it imposes the tariff, it may actually create more problems that cannot be foreseen-do not impose the tariff.
• D) The government should just ban all imports of that product until the "infant" is able to compete on its own.

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Definitions:

Cell Maturation

The process through which cells undergo development to achieve their final differentiated state, often involving growth, specialization, and functional enhancement.

Cell Migration

The movement of cells from one area to another, often guided by chemical signals, crucial in development, healing, and immune response.

Neuronal Maturation

The process by which neurons develop, mature, and acquire the ability to communicate through synapses.

Dendrite Growth

The process by which dendrites, the branching extensions of neurons, expand to increase the capacity for forming connections with other neurons.