Refer to the below graph. A monopsonist will set the wage at:

Suppose the government wants to discourage the use of cigarettes. If it imposes a tax on cigarettes, the equilibrium quantity falls the most when the elasticity of demand equals

A) 2.00. B) 1.00. C) 0.50. D) 0.

If the marginal utility of a product exceeds its MC, we would want, on efficiency grounds, to

a. increase production. b. decrease production. c. leave production constant. d. One cannot tell without knowing the price.