Question

A reason why it is difficult for developing countries to maintain a cartel is that"

Answer 1

Answer:

The existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes

is an argument rejecting free trade and supporting governmental involvement

The domestic market failure argument is a particular case of the theory of

the second best

The difficulty of ascertaining the right second-best trade policy to follow

reinforces support for free-trade options

The reason protectionism remains strong in the United States is that

the losses associated with protectionism are diffuse, making lobbying by the public impractical

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