Referring to Figure 8.1, again consider the steel import quota of Question #33. If the Mexican government auctions import licenses to the highest foreign bidder, the overall welfare loss of the quota to Mexico equals:
A. $200
B. $400
C. $600
D. $800
Answer:B
Referring to Figure 8.1, again consider the steel import quota of Question #33. If the Mexican government auctions import licenses to the highest foreign bidder, the overall welfare loss of the quota to Mexico equals:
A. $200 B. $400 C. $600 D. $800