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    Two Large Countries Are Thinking of Imposing a Tariff on the Same
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Two Large Countries Are Thinking of Imposing a Tariff on the Same

Question 116

Question 116

Essay

Two large countries are thinking of imposing a tariff on the same
good.
A) What is the best possible outcome for these two large
countries?
B) Is this outcome a Nash equilibrium?

Correct Answer:

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A) The best possible outcome is for both...

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