If Protective Import-Restricting Tariffs Are Imposed by a Country, in the Majority

question 23

Multiple Choice

If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's producers end up

• A) receiving a higher price for the good than they otherwise would.
• B) receiving a lower price for the good than they otherwise would.
• C) producing less of the good than they otherwise would.
• D) receiving a lower profit for the domestic good than they otherwise would.

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Definitions:

Concentration Ratios

A measure used in economics to assess the extent to which a market or industry is dominated by a few largest firms.

Total Industry Sales

The total revenue generated from all sales within a specific industry over a defined period of time.

Largest Firms

Companies that rank at the top within their industries by criteria such as revenue, market share, or employment size.

Mutual Interdependence

A situation in oligopoly markets where the actions of one firm significantly affect the outcomes of other competing firms.