Which of the Following Is True About a Lump-Sum Tariff

Multiple Choice

Which of the following is true about a lump-sum tariff?

A) Domestic firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
B) Foreign firms' average cost curves are shifted up by the amount of the lump-sum tariff.
C) Domestic firms' average cost curves are shifted up by the amount of the lump-sum tariff.
D) Foreign firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.