Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,

The government prefers an ad valorem tax to a specific tax that reduces the monopoly output by the same amount because

A) consumers are not harmed by the ad valorem tax. B) the monopoly prefers the ad valorem tax. C) consumers prefer the ad valorem tax. D) the ad valorem tax transfers more revenue from the monopoly to the government.

The use of specialization to achieve economies of scale is one reason modern societies are as prosperous as they are

a. True b. False Indicate whether the statement is true or false