A tariff protecting domestic monopolist will a) generally lead to a higher level of domestic welfare than an equivalent quota b) be always equal to an equivalent quota c) generally lead to a lower level of domestic welfare than an equivalent quota d) always improve welfare of a domestic country
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- Import tariff against a foreign monopolist a) always leads to a decrease in domestic welfare b) can increase domestic welfare c) welfare improving only if a foreign firm is dumping d) welfare improving only if a foreign firm is not dumpingThe imposition of a tariff on foreign goods is more likely to decrease producer surplus of the domestic firms competing with those foreign firms on whom the tariff is imposed. True or FalseThe following is not the cost of the tariff a. area a b. area b c. area d d. area a+b+c+d
- Brander-Spencer analysis states that A. competition can be enhanced by international trade. B. monopoly profits can be eliminated by international trade. C. monopoly profits can be eliminated by trade policies. D. monopoly profits can be moved from one country to another by a government subsidy.One advantage of a tariff over a quota, from the perspective of the nation imposing it, is that a tariff decreases the domestic price increases the quantity of imports decreases the quality of imports raises tax revenueYou manage a company that competes in an industry that is comprised of five equal-sized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million—and that it would only take $5 million in expenditures on (legal) lobbying activities to induce Congress to implement such a tariff.Discuss your strategy for improving your company’s profits.
- Many countries impose tariffs or quotas to protect the domestic industry from competition. True FalseTariff is a tax levied on a particular foreign product entering a country.True or FalseIf Bolivia is open to international trade in maize without any restrictions, it will import tons of maize. Suppose the Bolivian government wants to reduce imports to exactly 120 tons of maize to help domestic producers. A tariff of per ton will achieve this. A tariff set at this level would raise in revenue for the Bolivian government. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Tariff Jumping occurs when Group of answer choices Countries raise (and lower) their tariffs in an effort to stabilize the price of a product on the domestic market. A firm buys inputs from domestic firms rather than importing them from abroad over a tariff. A firm that otherwise would have exported to a country instead invests there in order to avoid paying the country’s tariff. A country raises a tariff against a foreign exporter who sells to it below cost.You manage a company that competes in an industry that is comprised of five equalsized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million—and that it would only take $5 million in expenditures on (legal) lobbying activities to induce Congress to implement such a tariff. Discuss your strategy for improving your company’s profitsThe long-term trend in barriers to trade can be characterized as follows: Group of answer choices The number of claims brought to the WTO dispute resolution department has skyrocketed. Trade barriers have generally increased, and means of trade have generally been increased. Trade barriers have generally been reduced, and means of trade have generally been increased. The long-term trend has been the steady increase in tariffs and import quotas.