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When a Tariff or a Quota Is Imposed on an Imported

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True/False

When a tariff or a quota is imposed on an imported product, the domestic industry benefits from higher prices and increased output.


Definitions:

Marginal Revenue Product

the additional revenue generated from using one more unit of a factor of production, holding other factors constant.

Marginal Revenue Product

The supplementary earnings derived from the utilization of an additional production factor unit.

Marginal Revenue Product

The additional income generated from selling one more unit of a good or service, calculated as the extra revenue produced by the marginal unit of output.

Optimal Use

Optimal use refers to the most efficient way to employ resources to achieve the highest level of satisfaction or output.

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