The total welfare associated with a market that includes a government sales tax equals
A) consumer surplus plus producer surplus.
B) consumer surplus plus producer surplus minus government tax revenue.
C) consumer surplus plus producer surplus plus government tax revenue.
D) the government tax revenue.
C
Economics
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The marginal cost of a monopolist is constant and is $10. The demand curve and marginal revenue curves are given as follows:
demand: Q = 100 - P marginal revenue: MR = 100 - 2Q The deadweight loss from monopoly power is ________. A) $1000.00 B) $1012.50 C) $1025.00 D) $1037.50 E) none of the above
Economics
An increase in a firm's scale of production leads to no change in average total cost as long as there are
A. negative returns to scale. B. diseconomies of scale. C. constant returns to scale. D. economies of scale.
Economics