Suppose That a Foreign Monopolist Supplies the Entire Domestic Market

Multiple Choice

Suppose that a foreign monopolist supplies the entire domestic market (there is no domestic production) . The home country then applies a $10 tariff on imports from the foreign monopolist. The home country will be better off if:

A) the terms-of-trade gain is less than the deadweight loss from the tariff.
B) the price change is more than the deadweight loss of the tariff.
C) the deadweight loss is more than the price change from the tariff.
D) the terms-of-trade gain is more than the deadweight loss from the tariff.