Determining the perfect competition

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Assume perfect competition. Rank the following policies in ascending order of Home welfare and explain you reasoning. If two policies are equivalent or cannot be ranked, justify your answer.

(a) Tariff of t1 in a small country corresponding to the quantity of imports M1.

(b) Tariff of t1 in a large country corresponding to the same quantity of imports M1.

(c) Tariff of t2 in a large country corresponding to the quantity of imports M2 > M1.

(d) Tariff of t2 in a large country corresponding to the quantity of imports M3 = 0.

Reference no: EM132503244

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