When a tax is imposed on a good or service, the
A) revenue gained by the government is the excess burden.
B) deadweight loss that arises from a tax is the excess burden.
C) share of the tax paid by the buyer is the excess burden.
D) share of the tax paid by the seller is the excess burden.
E) amount the government collects as tax revenue is the deadweight loss from the tax.
B
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Which of the following is NOT correct about a single-price monopoly?
A) Maximum profit is found where demand is the most inelastic. B) Marginal revenue is negative when demand is inelastic. C) Marginal revenue is positive when demand is elastic. D) To sell more output, the firm must lower its price. E) To maximize its profit, the firm produces so that marginal revenue equals marginal cost.
The area below the demand curve and above the price line measures
A) consumer surplus. B) economic profit. C) elasticity of demand. D) the total value obtained from consuming the good or service.