"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the
A)national-security argument.
B)infant-industry argument.
C)unfair-competition argument.
D)jobs argument.

Question

Quizplus · Accepted Answer

The statement highlights the concept of "infant-industry" argument, which proposes that new industries need temporary protection from competition to grow and become profitable in the long run. Thus, the statement supports the argument for protecting young industries, which many economists are skeptical about.

"Owners of Firms in Young Industries Should Be Willing to Incur