Economics homework question?
Economics homework question?
Allocative inefficiency happens in a monopoly because at the profit-maximizing output level:
a) Elastic, thus the government's cigarette-tax revenues would rise with a tax increase
b) Elastic, thus the government's cigarette-tax revenues would fall with a tax increase
c) Inelastic, thus the government's cigarette-tax revenues would fall with a tax increase
d) Inelastic, thus the government's cigarette-tax revenues would rise with a tax increase
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