An Infant Industry Firm May Be Reluctant to Borrow from Private

Multiple Choice

An infant industry firm may be reluctant to borrow from private markets instead of relying on a public subsidy when they fear that

A) experienced workers will go to work for other firms.
B) private capital markets are too efficient.
C) private capital markets are too week.
D) they will not achieve sufficient economies of scale.
E) governments will not extend them loans.