Solved

The Table Below Shows the Prices in Canada of One

Question 101

Multiple Choice

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.  Producing Country  Canadian Price in $ C anadian Price in $ Free Trade 40% Import Tariff  Canada 10.00 United Kingdom 9.00 United States 8.00\begin{array} { | l | c | c | } \hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \\\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \\\hline \text { Canada } & 10.00 & \\\hline \text { United Kingdom } & 9.00 & \\\hline \text { United States } & 8.00 & \\\hline\end{array} 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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents