A horizontal aggregate supply curve causes higher inflation, rather than higher output, to result from increases in the money supply.

Suppose that in the market for paper, demand is p = 100 - Q. The private marginal cost is MCp = 10 + Q. Pollution generated during the production process creates external marginal harm equal to MCe = Q

What specific tax would result in a competitive market producing the socially optimal quantity of paper?

Under a Cournot duopoly, the collusion curve represents:

A) all possible allocations of the pure monopoly quantity among the two firms in the duopoly. B) all possible allocations of the pure monopoly quantity that would be possible if the two firms in the duopoly did not cooperate. C) all optimal price-quantity outcomes for a cartel rather than a Cournot duopoly. D) the potential profits to be earned by firms in a collusive cartel.