Chile is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Chile imposes a $7 tariff on chips. Which of the following outcomes is possible?
a. The price of chips in Chile increases to $19; the quantity of Chilean-produced chips decreases; and the quantity of chips imported by Chile decreases.
b. The price of chips in Chile increases to $16; the quantity of Chilean-produced chips increases; and the quantity of chips imported by Chile decreases.
c. The price of chips in Chile increases to $19; the quantity of Chilean-produced chips increases; and the quantity of chips imported by Chile decreases.
d. The price of chips in Chile increases to $16; the quantity of Chilean-produced chips increases; and the quantity of chips imported by Chile does not change.
c
You might also like to view...
Conflicts can arise between divisions because
a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. all of the above
The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job
a. True b. False Indicate whether the statement is true or false
Economic profits are maximized at the point at which
A. accounting profits are equal to zero. B. marginal revenues equal marginal costs. C. accounting profit exceeds economic profit. D. total revenues are greater than total costs.
Monopolistic competition and monopoly have all of the following in common EXCEPT
A) P > MC. B) firms are price setters. C) barriers to entry. D) MR = MC.