If country A is importing good x from country B where x is produced in a perfectly competitive industry (composed of identical firms), then, in the long run, country A will suffer the entire deadweight loss from any tariff it might impose on imports of x from country B.
Answer the following statement true (T) or false (F)
True
Rationale: The supply in country B would be perfectly elastic -- implying that none of the tax burden from the tariff can be passed onto the market in B. Price in B therefore does not change -- implying no deadweight loss in B.
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