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Author Question: An ad valorem tax imposed on a monopolist will reduce the deadweight loss generated by the ... (Read 34 times)

nramada

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on: Jul 1, 2018
An ad valorem tax imposed on a monopolist will reduce the deadweight loss generated by the monopolist.
 
  Indicate whether the statement is true or false

Question 2

An individual paying twice as much in Social Security taxes over her lifetime as another individual would receive at least twice as much in Social Security benefits.
 
  a. True b. False


JYan

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Reply #1 on: Jul 1, 2018
Answer to Question 1

False. The tax will further reduce the output of the monopolist contributing to a greater DWL.

Answer to Question 2

b


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