Why is it better to protect an infant industry with monopoly power with a tariff than a quota?
A) A tariff causes domestic production to increase, whereas a quota causes production to decrease.
B) A tariff causes domestic production to decrease, whereas a quota causes domestic production to increase.
C) A tariff will raise the domestic price above the world price, whereas a quota will not.
D) A quota will raise the domestic price above the world price, whereas a tariff will not.
Correct Answer:
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