A lesson from the Brazilian experiment was that:
a. infant industry protection is almost never successful.
b. there are many determinants other than market price that also factor into an industry's success—firms had supplier difficulties and were hampered by excessive regulation.
c. government usually knows better than the market whether an industry has potential.
d. when politicians get involved, rational decisions and good business practices are more difficult.
Ans: b. there are many determinants other than market price that also factor into an industry's success—firms had supplier difficulties and were hampered by excessive regulation.
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"A single-price monopolist charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?