The unregulated, single-price monopolist illustrated in the ...

[fbq8i]

The unregulated, single-price monopolist illustrated in the figure above has a total cost of
 
  A) 8.00 per day.
  B) 16.00 per day.
  C) 32.00 per day.
  D) 40.00 per day.

Question 2

When the production of a good creates an external cost, by setting the tax rate equal to the ________, firms can be made to behave in the same way as they would if they bore the cost of the externality directly.
 
  A) marginal external cost
  B) marginal social benefit
  C) marginal private benefit
  D) marginal social cost

[Anton]

Answer to Question 1

C

Answer to Question 2

A