The optimum tariff is _________
1
that minimizes the net benefit resulting from the improvement in nation’s terms of trade against the positive efffect resulting from increase in the volume of trade
2
that maximizes the net benefit resulting from the improvement in the nation’s terms of trade against the negative efffect resulting from reduction in the volume of trade
3
that does not maximize the net benefit resulting from the improvement in the nation’s terms of trade against the negative effect resulting from reduction in the volume of trade
4
that does not minimize the net benefit resulting from the improvement in the nation’s terms of trade against the positive effect resulting from increase in the countries volume of trade