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Protection of infant firms:
Infant industries are those firms, which are young. The absence of economies of scale to them makes their unit cost of production higher than older and efficient firms in other countries. Protection may be justified during the early growth of an infant firm, As the infant firms grow, skills and productivity, as well as economies of scale will grow, so increasing the firm’s relative competitive advantage. To protect domestic labour against cheap foreign labour.The theory comparative cost advantage assumes that factors of production are both fully employed and mobile within countries. If large-scale unemployment exists within a country, protection may be used to increase employment.
What are the "three basic economic questions" that economists often address when examining how much economic output is formed? The three basic questions are: a) what is prod
A firm is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70. What would you advise this firm to do?
short run equilibbrium
compare and contrast between cordinal and ordinal approaches
Question: (a) With reference to the characteristics of market structure, describe why the market for powdered milk in Mauritius is an appropriate example of monopolistic compe
x-3y+6z=1 2x-5y+10z=0 3x-8y+17z=1
Homer consumes only donuts and beer. When he consumes less than 10 beers, Homer would gladly drink one more. After drinking 10 beers, Homer is so drunk that he does not notice any
price of laptop increases by 20% and there is a 40% drop in the quantity demanded?
Natural Factors: Seasonal variations may affect the demand for a commodity at certain times of the year. For example, during the raining season, demand for commodities such as j
how do you find the average fixed costs using total fixed costs and total product?
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