A monopolist always selects a price on the elastic portion of its ...

[Pineappleeh]

A monopolist always selects a price on the elastic portion of its demand curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Use the idea of interpersonal comparisons of utility to argue for a progressive income tax system where people in higher income brackets are charged higher tax rates on their extra income.

[Carissamariew]

Answer to Question 1

True

Answer to Question 2

Since the marginal utility of money diminishes for each individual, it seems reasonable to suppose that the utility a rich person derives from his/her marginal dollar is less than the utility a poor person derives from his/her marginal dollar. If the rich person doesn't get as much utility from his/her marginal dollar, then it won't hurt them as much to tax it away as it would hurt a poor person.

[Pineappleeh]

Thank you

[Carissamariew]

Happy to help you