How much is the tax?
A. $1.00
B. $1.50
C. $2.00
D. $2.50
C. $2.00
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The figure above shows the supply and demand curves for pizza. If the market is at its competitive equilibrium, what area in the graph above represents:
a. consumer surplus? b. producer surplus?
The Interstate Commerce Commission regulated the trucking industry for many years in order to
a. shield the railroads from competition in trucking b. prevent economic profits from being made c. regulate the truck monopoly in the interests of the consumer d. prevent economies of scale from occurring e. punish truck drivers for unionizing
A pure monopoly exists when:
A. a single firm produces a good with many close substitutes. B. only a single firm is present in the market. C. many firms produce a good with no close substitutes. D. a single firm produces a good with no close substitutes.
In order to internalize the externality due to pollution, the government should impose a tax based on
A) the economic damage associated with the pollution. B) the physical amount of pollution. C) the size of the firm causing the pollution. D) the value of the pollution-causing business activity.