What happens to the foreign firms marginal cost curve as a, Ask an Expert

Economics

Suppose that the U.S. Congress passes legislation that imposes a one-time lump-sum tariff on the product that a foreign firm exports to the United States.

a. What happens to the foreign firm's marginal cost curve as a result of the lump-sum tariff?
b. Will the lump-sum tariff cause the foreign firm to export more or less of the good?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M965845

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