Assume That Mexico Is a Small Country and It Imposes

question 11

Multiple Choice

Assume that Mexico is a small country and it imposes a tariff on imported automobiles.As a result of the tariff

• A) the world price of automobiles falls
• B) the world price of autos remains constant
• C) the Mexican price of autos falls
• D) the Mexican price of autos remains constant

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Definitions:

Agricultural Act

Legislation aimed at regulating agricultural practices, supporting farmers, and shaping agricultural policy.

Rule Of Reason

The rule stated and applied in the U.S. Steel case that only combinations and contracts unreasonably restraining trade are subject to actions under the antitrust laws and that size and possession of monopoly power are not by themselves illegal. Compare with per se violation.

Antitrust Applications

Legal measures and actions taken to prevent or reduce anti-competitive practices, ensuring fair competition in the market.

Monopoly Power

Monopoly power refers to the ability of a monopoly (a single supplier of a product or service) to dictate terms and prices to its favor because no competition exists.