If a country imposes a $10 tariff on a foreign monopolist, the domestic
Price will rise by:

Name: If a country imposes a $10 tariff on a foreign monopolist, the domestic Price will rise by:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The domestic price will rise by less than $10 because the foreign monopolist may choose to absorb some of the tariff in order to remain competitive in the domestic market. Therefore, the full cost of the tariff will not be passed on to the consumers in the form of a higher price.

If a Country Imposes a $10 Tariff on a Foreign