Suppose the corn-producing industry of the U.S.is a price taker in the world market and government puts a ban on imports.The corn industry also receives subsidy from the home government.Then

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The ban on imports restricts competition in the domestic market, leading to a decrease in social welfare. The subsidy granted to the corn industry results in the overproduction of corn, which further deteriorates social welfare and leads to deadweight loss. Therefore, removing both the ban on imports and subsidy would improve social efficiency by increasing competition, reducing overproduction, and eliminating deadweight loss. Everyone may not necessarily be better off without the subsidy as it depends on their position in the market.

Suppose the Corn-Producing Industry of the U