To the extent that domestic importing companies organize as a monopoly buyer, and foreign exporting companies behave as competitive sellers, the importing companies capture the revenue effect of a quota.

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Quizplus · Accepted Answer

If importing companies organize as a monopoly buyer, they have more market power and can negotiate lower prices with foreign exporting companies. As a result, they can capture more of the revenue effect of a quota, increasing their profits.

To the Extent That Domestic Importing Companies Organize as a Monopoly