Economic Issues and Policy 6th Edition by Jacqueline Murray Brux

Exercise 12

Suppose a concentrated U.S. industry, such as the aluminum industry, is successful in getting trade restrictions on aluminum imports passed through Congress. Because these restrictions will reduce the foreign competition faced by the American aluminum industry, they will also enhance the market power of American firms within this industry. What then is a possible impact of the trade restrictions on U.S. employment within this concentrated industry?