Quotas are a much greater threat to competition than are tariffs because quotas preclude additional imports at any price.
A tariff does not place a physical limit on the quantity of a good coming into the country while a quota does.

Question

Quizplus · Accepted Answer

Quotas restrict the quantity of imports that can enter a country, regardless of the price, thus limiting competition and potentially leading to higher prices for consumers. Tariffs, on the other hand, add a tax to imported goods, which may increase the price for consumers but still allow for competition as long as importers are willing to pay the tariff.

Quotas Are a Much Greater Threat to Competition Than Are