Problem
On a set of axes measuring average costs of production on the vertical axis and the level of output on the horizontal axis, illustrate the infant-industry argument for protection by drawing the long-run average cost curve of an efficient foreign firm facing constant returns to scale and the long-run average cost curve of an infant industry in a developing nation that becomes more efficient than established foreign firms as it grows.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.