During the 1950s, many profitable manufacturing industries in the United States, such as steel, tires, and autos, were considered oligopolies. Why do you think such firms work hard to keep imports from other countries out of the U.S.

market?

a. Without import barriers, excess profits in the United States would attract foreign firms, break down existing price agreements, and reduce profits of U.S. firms.

b. Without import barriers, foreign firms would be attracted to the United States and cause the cost in the industry to rise.

c. Without import barriers, foreign firms would buy U.S. goods and resell them in the United States, causing profits to fall.

d. Without import barriers, prices of goods would rise, so consumers would buy less of the products of these firms.