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Why Is It Impossible to Make Everyone Better Off in the Long

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Why is it impossible to make everyone better off in the long run by imposing import restrictions?


Definitions:

Fair Market Value

The price that a willing buyer and a willing seller would agree upon, given both parties have reasonable knowledge of the asset’s particulars.

Purchase Method

An accounting approach used to consolidate the financial statements of a buyer and a target company after an acquisition.

Diseconomies of Scale

The phenomenon where, beyond a certain point, the cost per unit increases as the scale of operations expands.

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