1.Which of the following forms of protection will a home monopolist prefer?

A) a large quotaa

B) small quotaa

C) low tariff

D) It would like all of these equally; that is, they are equivalent.

2.Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?

A) No; the imports of trucks declined from 1980 to 2000.

B) Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share.

C) Yes; but trucks and SUVs became indistinguishable, and a number of conclusions can be drawn.

D) No clear conclusions can be drawn.