The profit-maximizing output of a pure monopoly is not socially optimal because in equilibrium:

U.S. nominal GDP: a. has historically increased more slowly than real GDP. b. has historically increased more rapidly than real GDP. c. includes an estimate of the value of leisure time

d. includes an estimate of underground productive activity.

One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that the

a. equilibrium quantity of the good is unchanged. b. price the buyer effectively pays is lower. c. supply curve for the good shifts upward by the amount of the tax. d. tax reduces the welfare of both buyers and sellers.