What Is the Major Reason Why Developing Countries Often Impose

question 4

Essay

What is the major reason why developing countries often impose tariffs on imports rather than quotas?

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Definitions:

Imperfectly Competitive

A market structure where not all participants have equal ability to influence prices, with variations in products and control.

Marginal Revenue

The additional revenue that will be generated by increasing product sales by one unit.

Output

Output refers to the quantity of goods or services produced by a company, industry, or economy within a certain period.

Nondiscriminating Monopolist

A monopolist that charges the same price to all consumers for its product, regardless of demand differences.