We call a market where there is only one producer of a good or service a monopoly.
Answer the following statement true (T) or false (F)
True
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Suppose a sales tax of $1 is imposed on DVDs. Suppose the tax causes the price received by suppliers of the DVDs to fall by 60 cents. In this situation, the economic incidence of the sales tax
a. falls more heavily on the demanders of DVDs. b. falls more heavily on the suppliers of DVDs. c. is evenly split between the demanders and suppliers of the DVDs. d. is the same as the legal incidence of the tax.
Suppose a vote was taken among 7 district representatives about how much of the city budget should be spent on tourism advertising. Two prefer it to be 10 percent, two prefer 15 percent, and three prefer 50 percent. According to the median voter theorem, the chosen amount to spend on tourism advertising is ______ of the budget.
A. 10 % B. 15 % C. 50 % D. 30 %
At the profit-maximizing level of output, a monopolist will always operate where:
A. average total cost equals marginal cost. B. price is greater than average revenue. C. price is greater than marginal cost. D. total revenue is greater than total cost.
“The regulatory force in the market system bears the seeds of its own destruction.” Explain and evaluate
Please provide the best answer for the statement.