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Auction Quotas

Question 23

Multiple Choice

Auction quotas:


A) are frequently used by the United States.
B) would be fairer but necessarily much more costly in terms of national welfare than quotas allocated by administrative procedure.
C) would reduce the loss of consumer surplus as compared to identical quotas allocated by administrative procedure.
D) are seldom applied because they would eliminate the producer surplus gains provided by normal quotas while still causing the same consumer surplus losses.

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