Tariffs are used to protect infant industries these industries are those which ?
Correct answer: C. are not yet large enough to achieve economies of scale
- A. employ many young or untrained workers
- B. are competing with well-established overseas firms
- C. are not yet large enough to achieve economies of scale
- D. use a new technology
Explanation
An infant industry is newly developing and may not yet have enough output to obtain economies of scale. Temporary protection is intended to help it become competitive with established foreign producers.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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