Quotas are a much greater threat to competition than are tariffs because quotas preclude additional imports at any price.

Question

Quizplus · Accepted Answer

Quotas limit the quantity of imports regardless of their price, which can lead to reduced competition and higher prices for consumers. Tariffs, on the other hand, allow for imports to enter the market at a higher cost, but it doesn't completely limit them like a quota would.

Quotas Are a Much Greater Threat to Competition Than Are