The supply curve for motor oil is the typical upward-sloping straight line, and the demand curve for motor oil is the typical downward-sloping straight line. When motor oil is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is
a. larger than the area that represents consumer surplus in the absence of the tax.
b. larger than the area that represents government's tax revenue.
c. a triangle.
d. All of the above are correct.
c
Economics
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In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. the same as in perfect competition. B. equal to average total cost. C. equal to marginal cost. D. below average total cost
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