Now consider the model of Question 3, with the important modification that the industry is now a price-setting Bertrand oligopoly. Analyze the effect of a $1 per transistor import tariff imposed by the Home government.
(a) What are the effects on each firm's sales and profits in each country, as well as consumer surplus and tariff revenue?
(b) Does it raise Home welfare?
(c) How do its effects compare with the effects of the same policy in the event of Cournot competition (as in Question 3)? What is the reason for the differences?