Refer to Figure 29-1. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from

The effect of a tariff on a foreign monopolist is similar to a large nation imposing a tariff on a small nation. What is the implication for the welfare of the home nation?

a. Only very large tariffs bring any benefit to the home nation. b. No tariffs are the best policy; all tariffs have a deadweight net loss. c. Small tariffs can be beneficial, but only to a certain point. d. The foreign producer may actually raise prices to make the tariff impossible to impose.

The winner of a second-price sealed-bid auction pays an amount equal to ________

A) half of his bid B) the lowest bid C) the second-highest bid D) his valuation of the good