Which of the following is a problem with the infant-industry argument for protection?
A) Most developed countries increasingly have a larger portion of retirees than youth.
B) Consumer groups become very active in protesting the higher prices that result during infancy.
C) Other countries retaliate by limiting exports of technology needed by the infant industry producers.
D) If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.
Answer: D) If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.
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