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The figure given below shows the market for computers in the U.S. The domestic price line inclusive of the tariff lies above the international price line. Dd and Sd are the domestic demand and supply curves of computers respectively. Calculate the tariff revenue of the U.S. government.
Competitive Price-taker Market
A market structure where sellers accept the market price as given, having no control over it due to perfect competition.
Long-run Equilibrium
A state in which all factors of production and costs are variable, allowing firms to enter or exit the market, ultimately resulting in no economic profit for the firms in a perfectly competitive market.
Zero Economic Profit
A situation where a firm's total revenue is exactly equal to its total costs, including opportunity costs.
Constant Cost
A situation where the cost of producing one additional unit of a good or service is the same, regardless of the volume produced.
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