Podcast
Questions and Answers
What does the optimal tariff equal to in the given context?
What does the optimal tariff equal to in the given context?
- Equal to the change in marginal cost
- Proportional to the monopoly price
- Twice the change in relative foreign and domestic price of imports
- Inverse of the elasticity of import demand (correct)
In the scenario described, what does the monopolist's profit maximization condition indicate?
In the scenario described, what does the monopolist's profit maximization condition indicate?
- Import demand equals 10
- Import demand decreases with an increase in marginal cost
- Import demand is inversely proportional to the tariff
- Import demand equals 50 (correct)
How does the monopolist's marginal cost change with a tariff?
How does the monopolist's marginal cost change with a tariff?
- Increases by twice the value of the tariff (correct)
- Becomes inversely proportional to the import demand elasticity
- Decreases by the value of the tariff
- Remains unchanged
What is the relationship between import demand elasticity and protectionism?
What is the relationship between import demand elasticity and protectionism?
How does a decrease in import demand elasticity affect the optimal percentage tariff?
How does a decrease in import demand elasticity affect the optimal percentage tariff?
What happens to the monopolist's exports when a tariff is imposed?
What happens to the monopolist's exports when a tariff is imposed?
What is the import demand elasticity of the good in the scenario described?
What is the import demand elasticity of the good in the scenario described?
In the scenario, what is the price charged by the monopolist for the good?
In the scenario, what is the price charged by the monopolist for the good?
How many units are exported by the monopolist in the free trade equilibrium?
How many units are exported by the monopolist in the free trade equilibrium?
What is the marginal cost of the monopolist in this scenario?
What is the marginal cost of the monopolist in this scenario?
How does the monopolist maximize its profits?
How does the monopolist maximize its profits?
What is a specific tariff?
What is a specific tariff?
If the world price of a good falls below Pw and a country imposes an import quota, what will happen?
If the world price of a good falls below Pw and a country imposes an import quota, what will happen?
What happens if a country faces the world price Pw and trades freely without any restrictions?
What happens if a country faces the world price Pw and trades freely without any restrictions?
In monopoly pricing, what is the objective of the monopolist?
In monopoly pricing, what is the objective of the monopolist?
Which factor influences import demand elasticity the most?
Which factor influences import demand elasticity the most?
In a scenario of free trade between Indonesia and Thailand, what is the world price of pineapples?
In a scenario of free trade between Indonesia and Thailand, what is the world price of pineapples?
What is the volume of trade between Indonesia and Thailand when they engage in free trade?
What is the volume of trade between Indonesia and Thailand when they engage in free trade?
What effect does a 0.5 tariff imposed by Indonesia have on the price of pineapples in each country?
What effect does a 0.5 tariff imposed by Indonesia have on the price of pineapples in each country?
After the 0.5 tariff, what is the price of pineapples in Indonesia?
After the 0.5 tariff, what is the price of pineapples in Indonesia?
Under free trade, what happens to the quantity of pineapples supplied and demanded in Thailand?
Under free trade, what happens to the quantity of pineapples supplied and demanded in Thailand?
What is the impact of a 0.5 tariff on the volume of trade between Indonesia and Thailand?
What is the impact of a 0.5 tariff on the volume of trade between Indonesia and Thailand?
What does a lower import demand elasticity imply?
What does a lower import demand elasticity imply?
If a country has a 100% optimal percentage tariff, what does this indicate?
If a country has a 100% optimal percentage tariff, what does this indicate?
In the context of tariffs, what is the relationship between the optimal percentage tariff and import demand elasticities?
In the context of tariffs, what is the relationship between the optimal percentage tariff and import demand elasticities?
How does a monopoly facing a linear demand curve affect its pricing strategies?
How does a monopoly facing a linear demand curve affect its pricing strategies?
What is the significance of lower deadweight losses in the context of tariffs on inelastic goods?
What is the significance of lower deadweight losses in the context of tariffs on inelastic goods?
What economic concept is associated with the optimal percentage tariff being 82%?
What economic concept is associated with the optimal percentage tariff being 82%?
