Explain three argument of promote trade, Microeconomics

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1. "Price discrimination allows a monopoly to increase its economic profit by capturing part of the consumer surplus and turning it into economic profit. Such a situation however leads to a deadweight loss to the society as a whole in the long run." Is the previous statement correct or incorrect? If the statement is correct, why is it important in understanding firms' behaviors?

2.  Explain the three arguments used to promote trade barriers and two instruments to impose these trade restrictions in a country.

 

 


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