Why is a tariff-rate quota viewed as a compromise between the interests of the d

Question

Why is a tariff-rate quota viewed as a compromise between the interests of the domestic consumer and those of the domestic producer? Check all that apply.

A tariff-rate quota exposes home producers to severe import competition with a flatter over-quota tariff rate.

A tariff-rate quota minimizes the consumer costs of protectionism by applying a modest within-quota tariff rate.

A tariff-rate quota shields home producers from severe import competition with a stiffer over-quota tariff rate.

The entire tariff quota’s revenue is captured by domestic importers or foreign exporters as windfall profits.

Explanation / Answer

Option b, c.

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