Ad valorem tariffs are most useful if the product category is characterized by vertical product differentiation.

Name: Ad valorem tariffs are most useful if the product category is characterized by vertical product differentiation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Ad valorem tariffs, which are based on the value of the goods, are more effective in markets with vertical differentiation where products vary in quality and price, as they adjust with the value of the product.

Ad Valorem Tariffs Are Most Useful If the Product Category