Refer to Scenario 5.8. Without additional information, Icarus Airlines would
A) lease only the one airplane it is sure it can use.
B) lease 2 airplanes in order to guarantee it avoids the worst outcome, $10 million.
C) lease 3 airplanes because $140 million is greater than $90 million.
D) lease 3 airplanes because $75 million is greater than $60 million.
E) lease 3 airplanes because heavy tourism is more likely than light tourism.
D
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If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false