If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss due to both the monopoly and the tax is
A) $529.
B) $1332.
C) $1764.
D) $441.
A
You might also like to view...
The supply curve for high-skilled labor lies to the
A) right of the supply curve for low-skilled labor because more people want a high-skilled job. B) left of the supply curve for low-skilled labor because more people want a high-skilled job. C) left of the supply curve for low-skilled labor because it is costly to acquire skills. D) right of the supply curve for low-skilled labor because fewer high-skilled people are willing to work for a low wage.
In a very basic principal-agent model, output is contractible if:
A. the employee works in a team. B. the employee produces many products. C. output can be observed with some positive cost. D. the employee produces a single output.
Which of the following is a certificate of indebtedness?
a. both stocks and bonds b. stocks but not bonds c. bonds but not stocks d. neither stocks nor bonds
The inflow of foreign investment into the U.S. economy reflects a high level of confidence in the United States.
Answer the following statement true (T) or false (F)