Which of the following is true about a lump-sum tariff?
A) Domestic firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
B) Foreign firms' average cost curves are shifted up by the amount of the lump-sum tariff.
C) Domestic firms' average cost curves are shifted up by the amount of the lump-sum tariff.
D) Foreign firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
Correct Answer:
Verified
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