At free-trade prices, a bicycle in Country X sells for $100 when the per-unit cost of material inputs is $90. Country X has a nominal tariff rate of 15 percent on bicycles, and 10 percent on the material inputs. Based on this information, calculate the effective rate of protection for the bicycle industry in Country X. Assume that Country X is a small country.
A. 25%
B. 15%
C. 60%
D. 5%
Answer: C
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Fill in the blank(s) with correct word