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In the Long Run, Import Quotas Increase Net Exports

question 97

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In the long run, import quotas increase net exports.


Definitions:

Marginal Revenue

The supplementary income generated from the sale of an additional good or service by a firm.

Total Revenue

The entire amount of income generated by the sale of goods or services by a firm.

Market Price

The prevailing rate at which a product or service is available for purchase or sale in a market driven by competition.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service.

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