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If the ERP for a chair producing firm is -88%, which of the following statements are true (check all that are true)? Chair producers are
If the ERP for a chair producing firm is -88%, which of the following statements are true (check all that are true)? Chair producers are definitely making losses. There is a tariff on chairs, but not on any of the inputs to the chair-making process. Chair producers would prefer free trade in chairs and free trade in all inputs to the chair producing process, rather than the existing set of tariffs. There is a tariff on inputs to the chair-making process, but not on chairs. The protection that chair producers get from chair tariffs is more than offset by the higher costs they pay due to import tariffs on inputs for making chairs. The protection that chair producers get from chair tariffs is more than the higher costs they pay due to import tariffs on inputs for making chairs
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