The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Protection provided to the infant industries is rarely withdrawn because:

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-Protection provided to the infant industries is rarely withdrawn because:

Quizplus · Accepted Answer

The larger and more successful an industry becomes, the more political power it wields. This political power can be used to lobby the government to maintain the protection provided, even if it is no longer necessary. Therefore, protection provided to infant industries is rarely withdrawn. The other options are not necessarily true in all cases. The costs of withdrawing protection may be outweighed by the benefits in certain situations. Industries may not necessarily experience diseconomies of scale, and loss of government revenue may not always be a major concern. Additionally, infant industries may not always produce goods that are close substitutes of imported goods.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity