(Figure: The Home Monopolist's Market) The graph shows a home
Monopolist market with the imposition of a tariff.Because of the tariff,
The home government collects ______ in tariff revenue.

Question

Quizplus · Accepted Answer

The tariff revenue is calculated by the area of the shaded rectangle, which is (140 - 100) x 40 = $1,600 per unit. With 2 units being sold, the total tariff revenue collected by the home government is $1,600 x 2 = $3,200. Therefore, the correct answer is option B.

(Figure: the Home Monopolist's Market) the Graph Shows a Home