When the United States placed a tariff on steel imports in 2002, foreign producers naturally complained, but there were also complaints from U.S. firms operating in other industries. Why would other types of firms strongly object to the tarriffs on U.S. steel imports?
b) Name two factors that will increase the demand for labor, and two factors that will increase the supply of labor?
c) Explain what is it meant by, "internalizing an externality"?
d) Most firms in an oligopoly earn economic profit, yet addional firms do not enter the market. Explain why not?