Author Question: A 10 per-unit tax on cell phones raises the equilibrium price paid by consumers by 5. Before the ... (Read 688 times)

urbanoutfitters · **on:** Jun 29, 2018

A 10 per-unit tax on cell phones raises the equilibrium price paid by consumers by 5. Before the tax, 5,000 cell phones were sold per year. The revenue from the tax is

A) zero.
B) positive but less than 50,000 per year.
C) 50,000 per year.
D) more than 50,000 per year.

Question 2

The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is positive if it produces between

A) 0 and 5 units.
B) 0 and 15 units.
C) 0 and 20 units.
D) 5 and 20 units.