Firms in a given industry are affected by the tariff imposed on the product they sell, but not by the tariffs imposed on their purchased inputs.

Name: Firms in a given industry are affected by the tariff imposed on the product they sell, but not by the tariffs imposed on their purchased inputs.
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Question

Quizplus · Accepted Answer

Firms in a given industry can be affected by the tariffs imposed on their purchased inputs, as it may increase the cost of production and ultimately affect the price of the product they sell.

Firms in a Given Industry Are Affected by the Tariff