See if you can devise a similar proof to show that the optimal import tariff, where a

Question:

See if you can devise a similar proof to show that the optimal import tariff, where a country has monopsony power, is 1/Pes (where Pes is the price elasticity of supply of the import).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

Question Posted: