The above figure shows the demand and cost curves facing a monopoly. A $100 per unit tax would raise price by

Does it make sense to consider the returns to scale of a production function in the short run?

A) Yes, this is an important short-run characteristic of production functions. B) Yes, returns to scale determine the diminishing marginal returns of the inputs. C) No, returns to scale is a property of the consumer's utility function. D) No, we cannot change all of the production inputs in the short run.

The price of a given basket of goods in Year 1 was $1,300. The price of the same basket of goods in Year 2 was $1,560. The CPI for Year 2 taking Year 1 as the base year is ________.

A) 101 B) 120 C) 156 D) 100