The effect of a tariff
A. can lead to economies of scale for firms inside the nation.
B. can lead to a monopoly when domestic firms become the sole suppliers inside the nation.
C. will be more beneficial to large firms than to small firms.
D. is negligible since it applies to firms outside the nation.
Answer: B
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If it costs a firm $10 to produce a good and the same good sells for $7 abroad, then this firm is engaging in
A) profit maximization. B) price discrimination. C) price differentiation. D) dumping.
After World War II, the United States produced about ______ percent of the world's oil, much of which we exported.
A. 40 B. 50 C. 60 D. 70
What are most goods in the economy?
a) public goods b) natural monopolies c) private goods d) common resources
All else equal, it is more likely for a case to be settled the ________ the plaintiff's assessment of the expected (received) payment and the ________ the total cost of litigation.
A) smaller; smaller B) larger; smaller C) larger; larger D) smaller; larger