In the following diagram, offer curve 0A0 of country A is the free-trade offer curve, and the other four offer curves represent A's offer curves under four different tariff rates. Of these four other curves, only one of them can possibly be an offer curve which is associated with A's "optimum tariff." Which one?
A) 0A1
B) 0A2
C) 0A3
D) 0A4
Correct Answer:
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