If a monopolist's profits were taxed away and redistributed to its consumers,
A) inefficiency would remain because output would be lower than under competitive conditions.
B) inefficiency would remain, but not because output would be lower than under competitive conditions.
C) efficiency would be obtained because output would be increased to the competitive level.
D) efficiency would be obtained because output would be increased and profits removed.
A
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If all firms in a perfectly competitive industry are experiencing economic losses, then:
A. some firms will exit the industry, until accounting profits equal zero. B. some firms will exit the industry, until economic profits equal zero. C. some firms will exit the industry, until economic profits are positive. D. all existing firms will stay in the industry, hoping for better times.
In the above figure, the shift in the demand curve from D to D2 can be the result of
A) an increase in the price of soda, a complement to pizza. B) a decrease in the supply of pizza that raises the price of pizza. C) an increase in income if pizza is a normal good. D) a change in quantity demanded. E) an increase in the price of a sub sandwich, a substitute for pizza.
A command economic system does not need to be concerned with what to produce, how to produce things, or who will get the goods and services produced
a. True b. False
Stagflation results from continued decreases in aggregate demand
a. True b. False Indicate whether the statement is true or false