4. Suppose that demand and supply are exactly as described in problem 3 but there is no...
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4. Suppose that demand and supply are exactly as described in problem 3 but there is no marginal social benefit to production. However, for political reasons the government counts a dollar's worth of gain to producers as being worth $2 of either consumer gain or government revenue. Calculate the effects on the government's objective of a tariff of 5 per unit.
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International Economics Theory And Policy
ISBN: 9780321116399
6th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
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