The inverse demand in a Cournot duopoly is P = a ? b(Q1 + Q2), and costs are C1(Q1) = c1Q1 and C2(Q2) = c2Q2. The government has imposed a per-unit tax of $t on each unit sold by each firm. The tax revenue is:
A. greater than t times the total output of the two firms should there be no sales tax.
B. t times the total output of the two firms should there be no sales tax.
C. less than t times the total output of the two firms should there be no sales tax.
D. None of the answers is correct.
Answer: C
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Refer to Figure 23-1. According to the figure above, at what point is aggregate expenditure less than GDP?
A) J B) K C) L D) none of the above
If Year 1 is the base year, the growth of real GDP is approximately
A) 100%. B) 109.5%. C) 137.5%. D) 148%.
Over the elastic portion of a demand curve, a decrease in price causes:
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue. d. an increase in quantity demanded, but anything can happen to revenue.
The equation for determining real GDP for year X is:
a. b. x 100 c. - 100 d. x 100