In spring 2008, the U.S. Congress proposed to tax oil companies ...

[imanialler]

In spring 2008, the U.S. Congress proposed to tax oil companies because of their near-monopoly status. This could have the unintended consequence of
 
  A) increasing the equilibrium price by more than the tax.
  B) destroying the oil companies and leaving the United States without oil.
  C) increasing the profit of the best oil company.
  D) decreasing the power of the U.S. Congress.

Question 2

When the production of a good involves several inputs, an increase in the cost of one input will usually cause total costs to
 
  A) rise more than in proportion.
  B) rise less than in proportion.
  C) remain unchanged.
  D) rise by the exact amount of the input price increase.

[Hikerman221]

Answer to Question 1

A

Answer to Question 2

B