1. In the long run, the greater burden of a specific tax will usually be absorbed by
a. consumers.
b. the party - consumers or producers - with the more elastic demand/supply curve.
c. the party with the least elastic demand/supply curve.
d. shareholders and employees of the firm in the form of reduced dividends and wages.
e. none of the above.
2. A monopolist with multiple plants should allocate total production among plants so that
a. average cost is the same in all plants.
b. marginal revenue is the same in all plants.
c. marginal cost is the same in all plants.
d. output is the same in each plant.
3. A price-discriminating monopolist should divide sales among markets so that
a. average cost is less than revenue in each market.
b. price is the same in each market.
c. output is the same in each market.
d. marginal revenue is the same in all markets.