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What Will Happen to Profits and Domestic Prices When a Quota

Question 58

Multiple Choice

What will happen to profits and domestic prices when a quota is used
To protect a domestic monopolist from international competition?


A) Profits will fall; domestic prices will fall.
B) Profits will fall; domestic prices will rise.
C) Profits will rise; domestic prices will rise.
D) Profits will rise; domestic prices will fall.

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