The Imposition of a Tariff on a Good Produced by a Monopolist

question 277

Multiple Choice

The imposition of a tariff on a good produced by a monopolist provides it with additional protection because the tariff

• A) reduces competition from imports by raising the import price.
• B) prevents entrepreneurs from entering the market.
• C) is added to the firm's profits.
• D) allows more imports into the country.

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Definitions:

Carnival Roulette Wheel

A gambling game found in carnivals and casinos, where players bet on which numbered or colored slot a spinning ball will land on.

Cost to Play

The amount of money required to participate in an activity, game, or to pursue a certain action.

Gain

An increase in wealth, assets, or value, often resulting from investment or business operations.

Lose

To be deprived of something one once had or to fail to win in a competition or conflict.