if the tariff costs Rs 50/year per consumer, then its total cost for 140 crore Indians would be Rs 7000 crore/year. If it raises producer profits by Rs 30 crore/year on average for 100 steel producers, the total benefits would be Rs 3000 crore/year. In this example, the tariff results in a national loss of Rs 4000 crore/year.33 Yet, people are unlikely to protest against tariffs since the costs are diffused and are only Rs 50/year on average. In contrast, concentrated benefits make it worthwhile for steel producers to lobby for tariffs. They could each make political contributions of Rs 10
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