Import Tariffs and Quotas Under Imperfect Competition Suppose Home imports items produced by a monopolist in Foreign. In the figure, suppose that Home applies an import quota of five units, meaning that the Foreign firm cannot sell any more than that amount. a. To achieve exports sales of five units, what is the highest price that the Foreign firm can charge? 20 Consumer Surplus.. 17 Price ($) ONWAGONODGENWET MC MR D 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantityb. At the price you have identified in part a, show the Home consumer surplus on the figure. c. Considering the consumer surplus you found in b, what are the Home losses as a result of the quota? d. Based on your answer to C, leading to the same level of sales of five units by the Foreign firm would have the greater loss to the Home country