Which of the Following Does a Social Planner Necessarily Need

question 60

Multiple Choice

Which of the following does a social planner necessarily need to know to restore efficiency in a monopoly market?

• A) The monopolist's marginal costs only
• B) The buyers' demand for a close substitute of the product sold in the market
• C) The monopolist's marginal revenue and the tax levied on the sale of the good
• D) The monopolist's marginal costs and the buyers' willingness to pay for the good

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Definitions:

Current Value

The present worth of an asset or investment, which can fluctuate over time due to market dynamics and conditions.

Nuclear Warheads

Explosive weapons that derive their destructive force from nuclear reactions and can cause massive destruction and loss of life when detonated.

Corporation

A legal entity recognized by law, distinct from its owners, with rights to own assets, incur liabilities, and conduct business.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business.