In the short run, the monopolist should continue to produce whenever
a. price is greater than zero
b. price is less than average total cost
c. price is greater than average variable cost
d. price divided by average total cost exceeds the ratio of marginal cost to average cost at the optimal output
e. price is less than average variable cost at the optimal output
C
Economics
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If the government imposes a specific tax on a monopoly, the consumer's tax incidence
A) can exceed 100%. B) will always be between 0-100%. C) may be negative. D) will be the same as when the tax is imposed on a perfectly competitive firm.
Economics
Suppose that market demand for a good is Q = 480 - 2p. The marginal cost is MC = 2Q. Calculate the deadweight loss resulting from a monopoly in this market
What will be an ideal response?
Economics