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Suppose the United States auctioned off all import quotas, the auctions were perfectly competitive, and the government received the revenues from the auction. In this case, the deadweight loss from a quota would be _____ the deadweight loss from an equivalent tariff.

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johuquintero

Answer:

The correct answer is equal to

Explanation:

It has to be the same on the grounds that it makes a perfect equilibrium between the deadweight loss from a quota and the deadweight loss from an equivalent tariff. If they are not the same or equal the loss is significant and the expected outcomes are not achieved.

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