Who collects quota rents when the government gives quota licenses to domestic firms?

Question

Quizplus · Accepted Answer

Domestic producers collect quota rents when the government gives quota licenses to domestic firms. This is because by limiting the quantity of imports and granting licenses to domestic firms, the government creates an artificial scarcity of the imported product, allowing domestic producers to charge higher prices and earn higher profits.

Who Collects Quota Rents When the Government Gives Quota Licenses