The total welfare associated with a market that includes a government sales tax equals
A) consumer surplus plus producer surplus.
B) consumer surplus plus producer surplus minus government tax revenue.
C) consumer surplus plus producer surplus plus government tax revenue.
D) the government tax revenue.
C
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If an oligopolist reduces the price of its product: a. It may get some customers to switch from rival firms if they don't respond by reducing their prices
b. It may not get some customers to switch from rival firms if they respond by reducing their prices. c. It does not know whether its profits will rise or fall without knowing how rivals will change their prices in response. d. All of the above are true.
Markets are
A) a mechanism through which prices of goods and services are determined by the forces of supply and demand. B) specific geographic locations. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.