Customs duties decrease the total amount of a good's production cost.

Question

Quizplus · Accepted Answer

Customs duties are taxes imposed by a government on goods that are imported into or exported from a country. These taxes increase the cost of production for the imported goods, making them more expensive and decreasing their overall competitiveness in the market. Therefore, customs duties do not decrease the total amount of a good's production cost, rather they increase it.

Customs Duties Decrease the Total Amount of a Good's Production