If a Social Planner Were Running a Monopoly, That Planner

question 339

Multiple Choice

If a social planner were running a monopoly, that planner could achieve an efficient outcome by charging the price that is determined by the

• A)minimum point on the average total cost curve.
• B)intersection of the average total cost curve and the demand curve.
• C)intersection of the marginal cost curve and the demand curve.
• D)intersection of the marginal cost curve and the marginal revenue curve.

---

Definitions:

Payroll Tax

Fees levied on employers or their employees, customarily figured as a percentage of what staff are paid.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your next dollar of taxable income.

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders.

Federal Government

The national government of a federated state, which encompasses the overall governing institutions and political authority of the country.