Which of the following forms of protection will a home monopolist prefer?

Question

Quizplus · Accepted Answer

A home monopolist would prefer a small quota as it will limit the amount of imports allowed into the market, therefore reducing competition and allowing the monopolist to maintain a higher price for their product. A large quota or a low tariff may still allow a significant amount of imports into the market, which could potentially compete with the monopolist's product and lower its price.

Which of the Following Forms of Protection Will a Home