In spring 2008, the U.S. Congress proposed to tax oil companies because of their near-monopoly status. This could have the unintended consequence of
A) increasing the equilibrium price by more than the tax.
B) destroying the oil companies and leaving the United States without oil.
C) increasing the profit of the best oil company.
D) decreasing the power of the U.S. Congress.
A
Economics
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Industries that seek trade protection from government can be said to be engaging in rent seeking behavior
a. True b. False
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A Herfindahl index of 5,000 would indicate:
a. a monopoly. b. a duopoly (two firms) with equal shares. c. an oligopoly with three firms. d. a monopolistically competitive industry. e. a perfectly competitive market.
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