If the Tax on a Good Is Tripled,the Deadweight Loss

question 49

Multiple Choice

If the tax on a good is tripled,the deadweight loss of the tax

• A)remains constant.
• B)triples.
• C)increases by a factor of 9.
• D)increases by a factor of 12.

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Definitions:

Competitive Spectrum

The range of competition levels across different markets or industries, from perfect competition to complete monopoly.

Collusion

The practice of firms to negotiate price and/or market share decisions that limit competition in a market.

Concentration Ratios

Concentration ratios are measures that indicate the extent of market control by the largest firms within an industry, reflecting the degree of market competition.

High Concentration

A situation in a market where a small number of firms hold a large market share, often leading to reduced competition.