The use of a tariff provides monopoly protection since
A) it allows more imports into the country.
B) it reduces competition from imports by raising the import price.
C) it reduces exporters' profits.
D) it expands tax credits.

Question

Quizplus · Accepted Answer

By raising the price of imports through a tariff, it becomes more costly for domestic consumers to purchase imported goods. This reduces the competition that domestic companies face from these imports, effectively providing them with monopoly power in their respective markets.

The Use of a Tariff Provides Monopoly Protection Since