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In Cases of Infant Industries,even with Domestic Economies of Scale

Question 1

Multiple Choice

In cases of infant industries,even with domestic economies of scale,


A) a new firm will be able to effectively compete once it begins to export.
B) a new firm will find it easier to compete with tariffs to protect it from more efficient foreign competitors.
C) a new firm will find it harder to compete with tariffs to protect it from less efficient foreign competitors.
D) government procurement may be the only way to make them internationally competitive.
E) export subsidies may be necessary to achieve economies of experience

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