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Please explain the following questions: Suppose that in response to a threatened antidumping duty of t, the Foreign monopoly raises its price by the amount
Please explain the following questions:
Suppose that in response to a threatened antidumping duty of t, the Foreign monopoly raises its price by the amount t.
a) Illustrate the losses for the Home country.
b) How do these losses compare with the losses from a safeguard tariff of the amount t, applied by the Home country against the Foreign monopolist? c) In view of your answers to (a) and (b), why are antidumping cases filed so often?
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