Perfect competition is characterized by numerous firms.

An import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country

A) importing; improve; benefit B) exporting; improve; benefit C) importing; suffer; harm D) exporting; improve; harm E) importing; improve; harm

The fact that at the competitive equilibrium nobody can be made better off without making someone else worse off implies that

A) the equilibrium is Pareto efficient. B) the equilibrium is not Pareto efficient. C) the prices need to adjust further. D) further gains from trade are possible.