Suppose computers are imported into the US from Japan and face a tariff of $75 each. Assume the market for computers is competitive and the world price of a computer is $750. Suppose also that parts required to assemble computers can also be imported from abroad, are valued at $450, and face no tariffs when imported into the US. What is the effective rate of protection provided to US assemblers/ sellers of computers by the tariff schedule for computers?
Suppose computers are imported into the US from Japan and face a tariff of $75 each. Assume the market for computers is competitive and the world price of a computer is $750. Suppose also that parts required to assemble computers can also be imported from abroad, are valued at $450, and face no tariffs when imported into the US. What is the effective rate of protection provided to US assemblers/ sellers of computers by the tariff schedule for computers?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 8SCQ: How does the cost of saving jobs in protected industries compare to the workers wages and salaries?
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![Suppose computers are imported into the US from
Japan and face a tariff of $75 each. Assume the market
for computers is competitive and the world price of a
computer is $750. Suppose also that parts required to
assemble computers can also be imported from
abroad, are valued at $450, and face no tariffs when
imported into the US. What is the effective rate of
protection provided to US assemblers/ sellers of
computers by the tariff schedule for computers?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff9716e59-eff1-48fd-a19c-9a89b8a4cb69%2Fb7e45e83-bf9c-4945-8dda-e3ed81862ebc%2Frdqvqw4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose computers are imported into the US from
Japan and face a tariff of $75 each. Assume the market
for computers is competitive and the world price of a
computer is $750. Suppose also that parts required to
assemble computers can also be imported from
abroad, are valued at $450, and face no tariffs when
imported into the US. What is the effective rate of
protection provided to US assemblers/ sellers of
computers by the tariff schedule for computers?
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