Asked on 3 Nov 2020

2. Which of the following is not used as an argument for trade restrictions?

a. Emerging domestic industries, especially those with economies of scale, could not gain entry in some world markets without protection during the early years

b. Trade restrictions are required to prevent some countries from exporting a commodity at a price below its cost of production.

c. Consumer surplus is maximized when import tariffs and quotas promote exports over imports.

Answered on 3 Nov 2020

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