The Effect of a Tariff

question 319

Multiple Choice

The effect of a tariff

• A) is negligible since it applies to firms outside the U.S.
• B) can lead to economies of scale for firms inside the U.S.
• C) can lead to a monopoly advantage for firms inside the U.S. since they become the sole suppliers inside the U.S.
• D) will be more beneficial to large firms than to small firms.