Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a PcPt per unit tariff, per unit revenue received by domestic and foreign producers respectively will be:

a. Pc and Pa.
b. Pa and Pc.
c. Pa and Pt.
d. Pt and Pc.

ANSWER:

d. Pt and Pc.