If a Pigovian tax is too large, the resulting:

If Dr. Giltscalpel's gross revenue doubled when he doubled his surgical fees, the demand for his services within the relevant price range would be

A) indeterminate. B) perfectly elastic. C) perfectly inelastic. D) unit elastic. E) none of the above.

Firms that exhibit price-taking behavior

A) wait for other firms to set price, take it as given, and charge a higher price. B) have outputs that are too small to influence market price and thus take it as given. C) take pricing behavior in their own hands. D) are independently capable of setting price.