What is the advantage of the government imposing an ad valorem ...

[altibaby]

What is the advantage of the government imposing an ad valorem tax over a specific tax when facing a monopoly?
 
  What will be an ideal response?

Question 2

In 1950 there were 16 individuals contributing to Social Security for every one person collecting benefits.
 
  a. True b. False

[brbarasa]

Answer to Question 1

When comparing an ad valorem tax to a specific tax which generates the same revenue, the ad valorem tax is less distortionary, resulting in a smaller DWL.

Answer to Question 2

a

[altibaby]

Thanks for the timely response, appreciate it

[Jsherida]

Excellent