532EconomicsMedium
Economists suggest that an optimum tariff would be one which reduce imports to a point where________?
Amarginal social cost equals marginal social benefit
BPrice elasticity of imports is unity and tariff revenue is maximized
CComparative advantage is achieved
Dimport prices are the same as export prices
Correct answer
A. marginal social cost equals marginal social benefit
Explanation
The correct answer is marginal social cost equals marginal social benefit.