The result of antidumping tariffs is to ?
Correct answer: C. impose a price floor on foreign prices in the importing country
- A. increase consumer surplus in the importing country
- B. decrease producer surplus in the importing country
- C. impose a price floor on foreign prices in the importing country
- D. impose a price ceiling on foreign price in the importing country
Explanation
An antidumping tariff prevents foreign firms from selling below the permitted benchmark price in the importing country, functioning like a price floor on foreign goods. It raises the import price rather than imposing a price ceiling.
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