The government prefers an ad valorem tax to a specific tax that reduces the monopoly output by the same amount because
A) consumers are not harmed by the ad valorem tax.
B) the monopoly prefers the ad valorem tax.
C) consumers prefer the ad valorem tax.
D) the ad valorem tax transfers more revenue from the monopoly to the government.
D
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The range of output over which a firm's average variable cost is decreasing is the same as the range over which its
A) marginal cost is increasing. B) average fixed cost is decreasing. C) average product is increasing. D) average product is decreasing.
State some of the policies adopted by the U.S. government to check petroleum prices
A country will gain relatively more from trade when
A) trade is regulated. B) the world price is close to the country's opportunity cost of the good. C) the world price is below the country's opportunity cost of the good. D) the world price is much greater than the country's opportunity cost for the good.
Spending on programs that ________, such as Social Security and Medicare, is classified as entitlement and mandatory spending
A) is authorized only in times of budget deficits B) is authorized only in times of budget surpluses C) is authorized by Congress on an annual basis D) has been authorized by prior law