There are several conditions that justify limiting imports to ensure the survival of the "infant industry" and to justify government protection. Which of the following is(are) a justification?
A) Protection allows a firm an opportunity to move down along its average cost curve over time to become competitive at world prices.
B) Protection allows a firm to reduce future costs and cause its average cost curve to shift downwards.
C) There should not be any knowledge spillovers.
D) Protection allows a firm to shift its total cost curve to the left.
Correct Answer:
Verified
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