One way to deal with the efficiency problem of monopolies is to tax the profits of monopolists.
Answer the following statement true (T) or false (F)
False
Rationale: Taxing monopoly profits does not change monopoly behavior -- because whatever was profit maximizing at a zero profit tax will still be profit maximizing at a positive profit tax.
Economics
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In the long-run, a firm in monopolistic competition produces at an output level where
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC. E) P = ATC and MC = ATC.
Economics
Thinks about your own purchases. Consumer surplus
a. exists only rarely b. exists on every purchase that a consumer makes c. never exists—it's only a theoretical concept d. is received only if a good generates a utility higher than expected e. is earned on many of the purchases a consumer makes
Economics