Unlike a tariff, quotas do not allow domestic monopolists to assert their monopoly pricing powers.

Name: Unlike a tariff, quotas do not allow domestic monopolists to assert their monopoly pricing powers.
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Question

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Quotas limit the quantity of imports, creating scarcity and allowing domestic monopolists to charge higher prices. Tariffs, on the other hand, can lead to domestic monopolists not having to increase their prices as much because they face less competition from imports.

Unlike a Tariff, Quotas Do Not Allow Domestic Monopolists to Assert