For a home monopolist, a quota allows the firm to charge
_______________ the tariff.

Name: For a home monopolist, a quota allows the firm to charge _______________ the tariff.
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Question

Quizplus · Accepted Answer

With a quota, the home monopolist limits the amount of imports that can come into the country, creating a shortage in the domestic market. This allows the firm to charge a higher price than the international (tariff) price because consumers have no other choice but to purchase from the domestic monopolist.

For a Home Monopolist, a Quota Allows the Firm to Charge