Assume a unit tax of 4 is placed on suppliers. They are able to pass along some of the tax to suppliers as evidenced by prices rising from 5 per unit to 7 per unit. Output declines from 10 units to 8 units.
What is the ratio of the demander's share of the tax burden to the suppliers? a. 2.5 b. 2.0 c. 1.5
d. 1.0
Question 2
The monopoly maximizes profit by setting
A) price equal to marginal cost.
B) price equal to marginal revenue.
C) marginal revenue equal to marginal cost.
D) marginal revenue equal to zero.
The organization of mRNA as a translational unit
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