1.
Suppose that Canada produces 1.0 million bicycles a year and imports another 4.0 million; there is no tariff or other import barriers. Bicycles sell for$400 each. Parliament is considering a $40 tariff on bicycles. What is the maximumnet national loss that this could cause Canada? What is the minimumnational loss if Canadais a small country that can not affect the world relative price? (Hint:draw a diagram with relative supply and relative demand and put numbers givenhere on it. Next, imagine the possible positions and slopes of the relevantcurves.)

2.
Assume Canada is the only country with aproduction site in the world for hyperhoney infinite pasta; awonderful product produced using a delicate, highly perishable extractobtainable from some trees that grow only in Canada. Furthermore, there is nodomestic demand for this product in the country, so all production will beexported. The Canadian government has the choice of forming the pasta-producing industry either as amonopoly or as a large number of small pasta producers that will act as perfectcompetitors. What is your advice to the Canadian governmentabout which market structure to choose for pasta industry? Justify your suggestion.
小弟病了 实在看不下去书， 请高手指教