How Do the Deadweight Losses of a Tariff Differ When

question 160

Multiple Choice

How do the deadweight losses of a tariff differ when the domestic industry is perfectly competitive from when it is a monopoly?

• A) They are the same.
• B) Deadweight losses are larger for a perfectly competitive industry than for a monopoly.
• C) Deadweight losses are larger for a monopoly than for a perfectly competitive industry.
• D) It is not possible to compare deadweight losses of a monopoly with those of a perfectly competitive industry.

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