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
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Suppose the government has a budget deficit of $2 billion. If there is no Ricardo-Barro effect, how much crowding out of investment occurs?
A) some crowding out occurs, but less than $2 billion B) more than $2 billion C) exactly equal to $2 billion dollars D) No crowding out occurs and investment does not change. E) No crowding out occurs because investment increases.
Response to the energy crisis of the early 1970s did not include
a. gasoline "rationing by waiting." b. gasoline "rationing by price." c. increased bureaucratic involvement. d. Americans insulating their homes.
Which of the following operate under a fixed-rate unified currency system?
a. the 12 countries of the European Monetary Union b. the 50 states of the United States c. Hong Kong, Panama, and the United States d. all of the above
Tom walks Bethany's dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the loss in total surplus?
a. $50 b. $30 c. $25 d. $0