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When we were analyzing the effect of tariffs on a large country, we concluded that the welfare change would be +e-(b+d). After the discussion of
When we were analyzing the effect of tariffs on a large country, we concluded that the welfare change would be +e-(b+d). After the discussion of game theory where we take into account of foreign retaliation, is +e-(b+d) achievable? a Yes. b No
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