The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. TABLE 34- 1
-According to the infant- industry argument for protection,a new small industry
A) must be protected permanently to provide for a diversified economy.
B) must be protected even if it will never have a comparative advantage.
C) must be protected in order to provide a domestic supply of the product.
D) will need protection once it has exploited available economies of scale.
E) may need protection temporarily until it can exploit its economies of scale.
Correct Answer:
Verified
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