On January 1, 2005, quotas on clothing imports to the United States first instituted in the 1960s to protect the garment industry in the United States were eliminated. What was the likely effect on profits of foreign companies that sold clothing in the American market? The short-run effect of the quota removal is that profits (Click to select) because equilibrium price (Click to select) . If economies of scale exist and average total costs (Click to select) by more than the (Click to select) in equilibrium price, in the long run profits might (Click to select) with the removal of the quotas