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What is the most amount of revenue

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Assume that sugar is initially traded freely in the US at the world price of $20 and at this world price the US imports 5,000 units of sugar. Then assume that the US enacts a quota of 2,000 units of imported sugar that raises the domestic price of sugar to $45. What is the most amount of revenue that the government can generate if it combines this quota with a licensing fee?

Answer is $50,000.

Please explain.

Reference no: EM131441764

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