Question

Suppose the United States auctioned off all import quotas, the auctions were perfectly competitive, and the government received the revenues from the auction. In this case, the deadweight loss from a quota would be _____ the deadweight loss from an equivalent tariff.

Answer 1

The correct answer is equal to

Step-by-step explanation:

It has to be the same on the grounds that it makes a perfect equilibrium between the deadweight loss from a quota and the deadweight loss from an equivalent tariff. If they are not the same or equal the loss is significant and the expected outcomes are not achieved.