Would it be possible for the infant industry argument to be applicable to a perfectly-competitive industry? Why or why not?

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The Answer is The infant industry argument is the economic rationale for protecting new and emerging industries from foreign competition in order to give them time to develop and become competitive. This argument is typically used in the context of industries that are not yet mature and may not be able to compete with established foreign industries.

In a perfectly-competitive industry, there are many firms producing identical products and no single firm has the power to influence the market price. In this type of industry, there is no room for protectionism or government intervention to support infant industries. The principles of perfect competition dictate that new firms can enter the market freely and compete on an equal footing with existing firms.

Therefore, it would not be possible for the infant industry argument to be applicable to a perfectly-competitive industry. The very nature of perfect competition means that there are no barriers to entry and new firms are able to compete without the need for protectionist measures. In a perfectly-competitive industry, the market forces of supply and demand determine the success or failure of firms, and there is no need for government intervention to support infant industries.

Would It Be Possible for the Infant Industry Argument to Be