Which of the following does a social planner necessarily need to know to restore efficiency in a monopoly market?
A) The monopolist's marginal costs only
B) The buyers' demand for a close substitute of the product sold in the market
C) The monopolist's marginal revenue and the tax levied on the sale of the good
D) The monopolist's marginal costs and the buyers' willingness to pay for the good
D
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The tax on a bottle of wine is a type of ______ tax.
a. gift b. income c. property d. excise
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000
Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms agree to swap one permit and split the difference between the willingness to pay and willingness to accept, what is the price of a permit?
A. $4,500 B. $5,500 C. $7,250 D. $9,750