A lump-sum tariff imposed on foreign competitors will:
A) always remove foreign competitors from the market.
B) increase the profits of domestic firms when demand is high.
C) have no impact on domestic firms' profits when demand for domestic goods is high.
D) decrease the profits of domestic firms when demand is high.

Question

Quizplus · Accepted Answer

The Answer of A lump-sum tariff imposed on foreign competitors will:
A) always remove foreign competitors from the market.
B) increase the profits of domestic firms when demand is high.
C) have no impact on domestic firms' profits when demand for domestic goods is high.
D) decrease the profits of domestic firms when demand is high.

A Lump-Sum Tariff Imposed on Foreign Competitors Will