[Solved] What Will Be the Effect of a Monopoly Sales Tax

Figure 10.10 depicts the cost and revenue curves for a monopolist. -Refer to Figure 10.10 to answer this question.What is the level of profits at the profit-maximizing output? A)0. B)$20. C)$150. D)$450. E)$600.

All of the following,except one,are true at the output where a monopolist's marginal revenue is equal to zero? Which is the exception? A)It is the output that maximizes total revenue. B)It is the output that maximizes average revenue. C)It is the output that is associated with the mid-point of the AR curve. D)It is the output where average revenue must be greater than marginal revenue.

Suppose a monopolist was charging a price of $120 for its product and was selling 80 units.If it lowers its price to $119 and,as a result,sells 81 units what is the marginal revenue for the product? A)0. B)$1. C)$39. D)$9,639.

All of the following,except one,are true at the output(s)where a monopolist breaks even.Which is the exception? A)TC = TR. B)Profits are maximized. C)AR = AC. D)Economic profits are zero.

Under what circumstances will a profit-maximizing monopolist be forced to shut down? A)If the average revenue exceeds the average costs of production. B)If the average revenue exceeds the average variable costs of production. C)If the average variable costs of production exceeds the average revenue. D)If marginal revenue exceeds average revenue.

Table 10.4 outlines the cost and revenue data for a monopolist. -Refer to Table 10.4 to answer this question.What are the profit-maximizing level of output and price respectively? A)3 and $35. B)4 and $30. C)5 and $25. D)5 and $30. E)6 and $20.

Table 10.4 outlines the cost and revenue data for a monopolist. -Refer to Table 10.4 to answer this question.What is the level of profits at the profit-maximizing output? A)0. B)$7. C)$15. D)$20. E)$120.

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a perfectly competitive industry.What will be the equilibrium price and output respectively? A)$40 and 15. B)$40 and 30. C)$60 and 20. D)$60 and 25. E)$70 and 15.

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a monopoly industry.What will be the profit-maximizing price and output respectively? A)$40 and 15. B)$40 and 30. C)$60 and 20. D)$60 and 25. E)$70 and 15.

Which of the following is a correct statement of the socially optimum price? A)It is a price equal to the average cost. B)It is a price equal to the marginal cost. C)It is a price equal to the lowest average cost. D)It is a price equal to the marginal revenue.