The welfare effects of a quota depend, to considerable extent, upon

A) who has the quota license.
B) the size of the quota.
C) elasticities of domestic demand and supply.
D) all of the above.

D

Economics

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If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the consumer surplus will be

A) $0. B) $8 million. C) $16 million. D) $32 million.

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A product whose production requires a relatively high capital-labor ratio is

a. capital abundant b. capital intensive c. heavy industry d. high tech e. all of the above

Economics