Which of the following is not a problem in owner-manager or principal-agent conflicts?

Refer to Figure 15-11. Suppose the local government imposes a $2.50 per month tax on cable companies. What happens to the price charged by the cable company following the imposition of this tax?

A) The price rises from PM but it increases by an amount greater than $2.50 to reflect the monopoly's markup. B) The price remains at PM. C) The price rises from PM but it increases by an amount less than $2.50. D) The price rises from PM to (PM + $2.50).

The greater the differences in demand elasticities of consumers within a market, the more the monopolist benefits from charging a uniform price for his product

Indicate whether the statement is true or false