Suppose computers are imported into the US from Japan and face a tariff of $75 each. Assume the market for computers is competitive and the world price of a computer is $750. Suppose also that parts required to assemble computers can also be imported from abroad, are valued at $450, and face no tariffs when imported into the US. What is the effective rate of protection provided to US assemblers/ sellers of computers by the tariff schedule for computers?

Suppose computers are imported into the US from Japan and face a tariff of $75 each. Assume the market for computers is competitive and the world price of a computer is $750. Suppose also that parts required to assemble computers can also be imported from abroad, are valued at $450, and face no tariffs when imported into the US. What is the effective rate of protection provided to US assemblers/ sellers of computers by the tariff schedule for computers?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

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