How do the deadweight losses of a tariff differ when the domestic industry is perfectly competitive from when it is a monopoly?
a. They are the same.
b. Deadweight losses are larger for a perfectly competitive industry than for a monopoly.
c. Deadweight losses are larger for a monopoly than for a perfectly competitive industry.
d. It is not possible to compare deadweight losses of a monopoly with those of a perfectly competitive industry.
Ans: a. They are the same.
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