Subsidies mean that infant industry firms can charge

Question

Quizplus · Accepted Answer

Subsidies can help infant industry firms compete with foreign producers by enabling them to charge a price equal to the world price and still earn a profit. This is because the subsidy offsets the costs of production, allowing the firm to maintain a competitive price. Charging a higher price than foreign producers may put the firm at a disadvantage if consumers are able to purchase cheaper imports.

Subsidies Mean That Infant Industry Firms Can Charge